Staff Reporter
Listed milk processor Dairibord Zimbabwe has entered into a strategic alliance with its largest raw milk supplier Tavistock Estate Private Limited as the company seeks to improve its throughput against the backdrop of a devastating drought.
The move is expected to provide Dairibord access to raw milk and the parties will collaborate in the development of a sustainable raw milk supply business model that will unlocks shareholder value.
The strategic alliance includes a milk supply agreement and a joint development agreement that will govern the collaboration of the two parties.
“Both parties will combine their competences and experiences on future milk supply growth strategies,” Dairibord said in a statement.
Dairibord will actively assist Tavistock in securing structured finance through guarantees and other capital raising mechanisms to achieve mutual growth targets.
“In addition, Dairibord will subscribe to preference shares in Tavistock that will guarantee DZPL a board seat, dividends and voting rights in Tavistock,” the company said.
The transaction qualified as a related party transaction and has been declared as fair and reasonable in pursuance of the provisions ZSE listing requirements.
A fair and reasonable opinion is expected to be made available for inspection by end of February.
