By Alois Vinga
LISTED food and dairy products processor, Dairibord Zimbabwe Limited (DZL) has urged shareholders to exercise caution ahead of plans to enter into a transaction, which will likely to result in merger with an unlisted Kwekwe-based entity, Dendairy.
The DZL has made prior cautionary announcements dated on 1 July 2020 and subsequent updates on 22 July 2020, 13 August 2020, 4 September 2020, 25 September 2020, 16 October 2020, 6 November 2020 and 27 November 2020.
In an update this week, DZL company secretary, Samson Punzisani said the pending transaction is likely to have effect on the company’s share.
“Shareholders are advised that Dairibord Holdings Limited is still in discussion with an unlisted entity for a merger and acquisition transaction. If successfully concluded, this transaction will have a material effect on the price of the company’s shares, the full impact of which is still being determined,” he said.
“Accordingly, shareholders are advised to continue exercising caution when dealing in the company’s shares until further notice,” said Punzisani.
Market watchers believe the merger will strengthen Dairibord’s brand and enable it to be the dominant force in the supply of dairy products both locally and internationally.
Dendairy was founded in 2004 after identifying that the dairy product market was lagging behind in world standards. More imported dairy products were being found on Zimbabwean shelves and Dendairy started producing them.
Dairibord will leverage on Dendairy’s strategic investments created over the years with the introduction of the UHT sachets plant, and the Kwekwe factory being continually upgraded.
The listed business unit is listed in all the major retailing chains and has engaged distributors who service all the market channels being wholesale, retail and the informal sector.
In 2017, the firm broke into the SADC regional export market and the move is to-date, one of its greatest achievements.
In June 2001, DZL acquired 100% ownership of Lyons Zimbabwe business and formed a transport and Logistics company – NFB Logistics in 2003.
This saw the company transforming into a holding company with – Dairibord Zimbabwe (Private) Limited, Lyons, the now disposed Dairibord Malawi (Private) Limited and NFB Logistics (Private) Limited.
The name of the holding company changed to Dairibord Holdings Limited (DHL) from Dairibord Zimbabwe Limited (DZL).