Online Reporter
Nelson Gahadza
Senior Business Reporter
Shareholders with a controlling 51 percent stake in Dairibord Holdings have announced plans to sell their shares just as the dairy processor planned to migrate its shares to the US dollar-denominated Victoria Falls Stock Exchange.
A few years ago, Dairibord announced plans to migrate its listing from ZSE to VFEX to unlock shareholder value and gain access to foreign currency capital it requires to support growth.
In a cautionary statement, Dairibord said it had received a joint notice from three of its major shareholders, namely Equivest Asset Management (Private) Limited, Mega Market (Private) Limited and Mutare Mart & Exchange (Private) Limited, advising the board that they had entered into negotiations with an unnamed third party over the potential acquisition of a controlling block of shares.
“Together, they have advised the board that their aggregate shareholding in the company constitutes more than 51 percent of the company’s issued ordinary shares and that they have entered into negotiations with an unnamed third party regarding the potential acquisition of a controlling block in the company,” the company said.
Dairibord said the proposed transaction, if successfully concluded, may have a material effect on the market price of its shares and urged shareholders and the investing public to continue exercising caution when trading the company’s stock.
The company added that further announcements would be issued in line with regulatory and listing requirements once there are material developments regarding the proposed transaction. Dairibord announced plans recently to migrate its listing from the ZSE to the VFEX, which the company’s board has already approved.
At the time, the company said a detailed circular explaining the transaction was being prepared for shareholders.
The proposed migration reflects a growing trend among Zimbabwean corporates seeking to align their listings with the currency structure of their businesses.
The VFEX, which trades exclusively in United States dollars, has increasingly attracted companies looking to access hard currency capital, improve liquidity and broaden their international investor base. The exchange also offers several incentives, including lower capital gains tax, reduced withholding tax on dividends for foreign investors and the unrestricted repatriation of capital and dividends, making it attractive to both issuers and investors.
Several leading companies have already migrated or established listings on the VFEX in recent years as confidence in the exchange continues to strengthen.
Most recently, financial services giant Old Mutual announced plans to migrate its secondary Zimbabwe listing from the ZSE to the VFEX, underscoring growing corporate confidence in the exchange. The proposed share sale also comes against the backdrop of a strong operational performance by Dairibord.
In its first-quarter trading update for 2026, the group reported a 26 percent increase in sales volumes, driven by double-digit growth across all its core product categories following recent investments in production capacity.
Liquid milk volumes rose 15 percent after the commissioning of the Chipinge Steri milk plant in December 2025, while the beverages segment recorded a 29 percent increase following capital investments in bottled Cascade and Pfuko Maheu production lines.
The foods division posted a 31 percent rise in volumes, supported largely by strong demand for yoghurt products.
The company said the performance reflected its strategic focus on expanding production capacity and optimising its route-to-market initiatives. Product sales remained dominated by beverages, which accounted for 67 percent of total volumes, followed by liquid milk at 24 percent and foods at nine percent.
Export volumes, however, declined by 40 percent as the company prioritised meeting increased demand in the domestic market.
daniel chigunwe