By Victor Fanuel
HARARE — Dairibord Holdings could be headed for a change in ownership after shareholders controlling more than 51 percent of the dairy processor revealed they are negotiating the sale of their combined stake to an unnamed third party.
A cautionary statement issued by the Zimbabwe Stock Exchange-listed company said Equivest Asset Management, Mega Market and Mutare Mart & Exchange had jointly notified the board that they had entered into negotiations over the potential disposal of a controlling block of shares.
The company said the three investors together hold more than 51 percent of Dairibord’s issued ordinary shares, giving any successful buyer effective control of one of Zimbabwe’s largest food and beverage manufacturers.
“Together, they have advised the Board that their aggregate shareholding in the Company constitutes more than 51% of the Company’s issued ordinary shares and that they have entered into negotiations with an unnamed third party regarding the potential acquisition of a controlling block in the Company,” Dairibord said.
Directors warned that the proposed transaction could materially affect the company’s share price and urged investors to continue exercising caution while the negotiations are underway.
“The Transaction, if successfully concluded, may have a material effect on the market price of the Company’s shares.
“Accordingly, shareholders and members of the investing public are advised to continue to exercise caution when dealing in the Company’s shares,” further said the company.
No details were provided on the identity of the prospective buyer, the value of the proposed transaction or how far negotiations have progressed.
News of the potential takeover comes only weeks after Dairibord announced plans to migrate its listing from the Zimbabwe Stock Exchange (ZSE) to the United States dollar-denominated Victoria Falls Stock Exchange (VFEX), a move aimed at unlocking shareholder value and improving access to hard currency capital.
Analysts say the proposed sale introduces a new dimension to that migration process, although the company has not linked the two developments.
Among the selling shareholders, Mega Market has steadily emerged as one of the most influential investors on the ZSE.
Led by Mutare businessman Shiraan Ahmed, the investment company acquired an initial 10 percent stake in Dairibord in 2018 before increasing its holding to more than 23 percent last year.
Its investment portfolio also includes a controlling stake in Turnall Holdings as well as significant shareholdings in Tanganda Tea Company, Mashonaland Holdings and Art Corporation.
A successful acquisition would rank among Zimbabwe’s biggest corporate transactions in recent years, transferring control of a company whose portfolio includes household brands such as Steri Milk, Cascade, Pfuko Maheu, Lacto and Lyons.
Market observers note that ownership of more than half of a listed company’s shares gives an investor the power to appoint directors, shape strategy and influence major corporate decisions.
Under Zimbabwe’s takeover regulations, a purchaser of a controlling stake may also be required to extend an offer to minority shareholders.
Dairibord said further announcements would be made in line with listing requirements as and when there are material developments regarding the transaction.
