Dairibord shareholders seek CTC clearance
STAFF WRITER
Three major shareholders in Dairibord Holdings Limited have approached the Competition and Tariff Commission (CTC) over a proposed merger that could pave the way for the sale of their combined controlling stake to a third party.
Equivest Asset Management (Pvt) Ltd, Mega Market (Pvt) Ltd and Mutare Mart & Exchange (Pvt) Ltd, which collectively control more than 51% of Dairibord’s issued ordinary shares, have submitted a merger notification to the competition regulator in connection with the proposed disposal.
Dairibord company secretary Maurice Karimupfumbi said the significant shareholders had notified the board of the regulatory filing.
“…Dairibord has been informed by Equivest Asset Management (Pvt) Ltd, Mega Market (Pvt) Ltd and Mutare Mart & Exchange (Pvt) Ltd (together, the significant shareholders) that they have submitted a merger notification to the Competition and Tariff Commission in connection with the proposed disposal of their aggregate shareholding to a third party,” Karimupfumbi said.
The move marks a key step in a transaction that could result in a change of control at one of Zimbabwe’s largest consumer goods companies.
Although Dairibord has not identified the prospective buyer, market speculation has pointed to India-based beverage company Varun Beverages as the frontrunner for the controlling stake. Zimbabwe’s largest brewer ,Delta Corporation, is also said to have joined the race to acquire a controlling stake in Dairibord.
Negotiations are understood to be ongoing, with the company warning investors that the transaction could have a material impact on its share price.
“The transaction and the migration, if successfully concluded or implemented, may have a material effect on the market price of the company’s shares,” Karimupfumbi said.
He urged shareholders and investors to exercise caution when dealing in Dairibord shares, adding that further announcements would be made in line with applicable regulations and listing requirements.
The proposed change in ownership comes as Dairibord pursues a separate restructuring of its capital-market presence.
The company is progressing with plans to voluntarily delist from the Zimbabwe Stock Exchange and migrate to the United States dollar-denominated Victoria Falls Stock Exchange (VFEX).
Karimupfumbi said details of the migration would be contained in a circular to shareholders to be issued in due course.
The combination of a potential change in control and the planned VFEX migration places Dairibord at the centre of investor attention, with the market awaiting details of the prospective buyer, the value of the transaction and the company’s future strategic direction.
A successful takeover could trigger broader changes in Dairibord’s strategy, capital allocation and management as the new shareholder seeks to unlock growth in its dairy, beverage and food businesses.
The VFEX migration could also strengthen the company’s access to hard-currency capital and provide investors with a United States dollar valuation benchmark.
The move reflects a growing shift by Zimbabwean corporates towards the VFEX, which offers foreign-currency settlement and greater flexibility for international investors.
