Chronicle Editor
Oliver Kazunga, Senior Business Reporter
LISTED food and milk processor, Dairibord Holdings Limited (DHL) says negotiations for a possible merger with another dairy company, Dendairy, have collapsed.
The company did not disclose the reasons for the failure of the planned merger but clarified in a withdrawal of cautionary statement that following cancellation of the deal, caution was no longer required when dealing with its shares.
“Dairibord Holdings Limited and Dendairy (Private) Limited have been exploring opportunities for creating sustainable shareholder value for mutual benefit,” said the company.
“Shareholders are referred to the cautionary announcement first published on 1 July 2020 and are advised that the conclusion of the discussions indicates that it is in the interest of both parties to discontinue the process and remain as separate entities.
“The contents of the cautionary have ceased to have any effect on the company. Accordingly, caution is no longer required to be exercised when dealing in the company’s shares. The parties express best wishes and success for the future.”
Dairibord initially announced the planned merger talks in July last year.
The collapse of the merger deal comes against a backdrop of last year’s six percent decline in raw milk intake, largely triggered by lower milk yields at farms due to rising costs of stockfeed.
In the first five months of 2021, Dairibord indicated that its sales volumes were up 49 percent. – @okazunga
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