Dairibord Majority Holders In Talks To Sell Controlling Stake

Three shareholders now hold more than 51% of Dairibord Holdings and have opened negotiations with an unnamed third party over the possible sale of a controlling stake, the dairy firm said on 10 July.

In a cautionary statement, Dairibord said it had received a joint notice from Equivest Asset Management, Mega Market and Mutare Mart & Exchange confirming their combined shareholding had passed the 51% threshold. The trio told the board they were in talks over a potential transaction involving a controlling block of shares.

“The transaction, if successfully concluded, may have a material effect on the market price of the company’s shares,” company secretary Maurice Karimupfumbi said in the notice.

He advised shareholders to “continue to exercise caution” when dealing in Dairibord stock.

The statement follows a previous cautionary issued on 24 June, which remains in effect.

Of the three shareholders, Mega Market is the most prominent. Led by Mutare businessman Shiraan Ahmed, it has become one of the biggest investors on the Zimbabwe Stock Exchange.

Mega Market first bought a 10% stake in Dairibord in 2018 and steadily increased its holding to more than 23% last year.

The group has built a broad portfolio across the ZSE. It holds a controlling stake in Turnall and has investments in Tanganda, Mashonaland Holdings, RioZim and Art Corp, among others. Mega Market is also a major manufacturer and packager of consumer goods, operating a large factory in Mutare.

Dairibord, incorporated in April 1994, is one of Zimbabwe’s largest dairy and beverage producers.

The board said further announcements would be made in line with listing requirements as talks progress.

No details were given on the third party involved in the negotiations or on the potential value of the deal.