Listed milk processor, Dairibord Holdings Limited’s takeover of Kwekwe headquartered dairy firm-Dendairy is inching closer after the former issued an update on negotiations and warned shareholders to be cautious of trading its shares.
Dairibord first revealed plans of a possible merger in July this year with discussions seemingly taking shape now.
“Further to the cautionary announcement published in the press 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, shareholders are advised that Dairibord Holdings Limited is still in discussion with an unlisted entity (Dendairy (Pvt) Ltd), 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. Accordingly, shareholders are advised to continue exercising caution when dealing in the company’s shares until further notice,” said Dairibord in its latest update of the deal.
The acquisition is expected to strengthen Dairibord market dominance after the company endured a 10 percent decline in volumes during third quarter 2020 compared to 2019 levels.
Dairibord currently accounts for 38 percent of the national milk intake, making it the largest dairy producer in the country.
