Mandiwanza Comments On Dairiboard, Dendairy Merger Deal Failure

Dairiboard Holdings Limited (DZL) chief executive officer Anthony Mandiwanza has said despite the failed merger talks with Kwekwe based competitor Dendairy, the former is still hunting for opportunities.

Mandiwanza spoke as sources revealed that the talks collapsed over corporate governance issues.

In a recent exclusive interview with businessdigest, Mandiwanza said the Zimbabwe Stock Exchange (ZSE)-listed milk processor has not considered the collapse a setback. He told businessdigest during the CEO Africa Roundtable annual conference in Victoria Falls:

We are a living organisation that continues to look for opportunities for growth.

The opportunities for growth could either be organic growth or inorganic growth. It cannot be an event. It is an ongoing process.

In June last year, DZL first announced the start of discussions that were expected to end with the creation of a massive milk processing asset reaching out to the rest of Africa from its base in Zimbabwe.

The merger was seen as a potential catalyst to scale up raw milk production while boosting foreign currency earnings for the combined asset.

Talks dragged on for about one year, but in August, DZL, which is compelled by its listing conditions to give market updates, announced that talks had collapsed. Dairibord said in a statement:

Dairibord Holdings Limited and Dendairy (Private) Limited have been exploring opportunities for creating sustainable shareholder value for mutual benefit.

Shareholders are referred to the cautionary announcement first published on July 1, 2020, and are advised that the conclusion of the discussions indicates that it is in the interest of both parties to discontinue the process and remain as separate entities.

Mandiwanza said the company’s plans for next year would be dependent on the economic environment.

He said they will consider issues such as monetary and fiscal policies, which have an impact on investments and demand for DZL products.

More: The Independent

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