Discussions for a possible merger and acquisition of Dendairy private limited by the country’s biggest dairy processor, Dairibord Holdings are still ongoing after months of deliberations.
Dendairy has witnessed tremendous growth over the past few years becoming arguably the second biggest player in the country’s dairy sector.
It has also created export markets in Zambia, Malawi and Mozambique.
In its latest cautionary statement to shareholders published on the Zimbabwe Stock Exchange (ZSE) website, Dairibord said discussions between the two entities which started last year are still on.
“Further to the cautionary announcement published in the press on 1 July 2020 and subsequent updates, shareholders are advised that Dairibord Holdings Limited is still in discussion with an unlisted entity (Dendairy (pvt) Ltd), for a merger and acquisition transaction,” said Dairibord.
“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.
“Accordingly, shareholders are advised to continue exercising caution when dealing in the company’s shares until further notice.”
If a merge is successful, Dairibord will control over 50 percent of the country’s dairy sector from the current levels of 38 percent market share.
Dendairy will in turn, add to the list of Dairibord’s expanse of business portfolios which include brands such as Lyons which produces ice creams and dairy beverages on top of its property portfolio that include Goldblum Investments (Private) Limited, Chatmoss Properties (Private) Limited, Quallinnex Properties (Private) Limited, and Slimline Investments (Private) Limited.