Dairibord Holdings Limited could be headed for a change in control after three of its largest shareholders disclosed that they are negotiating with an unnamed third party over the possible sale of a controlling stake in the company.
In a cautionary statement issued on July 10, the dairy producer said it had received a joint notice from Equivest Asset Management, Mega Market and Mutare Mart & Exchange, advising that their combined shareholding exceeds 51 percent of the company's issued ordinary shares.
The shareholders said they had entered into negotiations with a third party regarding the potential acquisition of their controlling block of shares.
"The Transaction, if successfully concluded, may have a material effect on the market price of the Company's shares," Dairibord said.
The company urged shareholders and the investing public to continue exercising caution when dealing in its shares, adding that further announcements would be made as material developments emerge.
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The latest update follows an earlier cautionary statement issued on June 24, which remains in effect.
If completed, the transaction would result in a change of control at one of Zimbabwe's largest food and beverage manufacturers, although neither the identity of the prospective buyer nor the proposed value of the deal has been disclosed.
Among the three shareholders, Mega Market has steadily increased its investment in Dairibord over the past several years.
The investment company, led by Mutare-based entrepreneur Shiraan Ahmed, first acquired a 10 percent stake in Dairibord in 2018 before increasing its shareholding to more than 23 percent last year, making it one of the company's largest shareholders.
Mega Market has built a significant investment portfolio on the Zimbabwe Stock Exchange, including a controlling stake in Turnall Holdings, as well as investments in Tanganda Tea Company, Mashonaland Holdings, Art Corporation and several other listed firms.
The outcome of the negotiations remains uncertain, with the transaction still subject to the conclusion of discussions between the shareholders and the prospective purchaser.
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