Zim Firm increases foothold in Dairibord Malawi

By Nyasa Times Reporter

Diversified Dairibord Holdings Limited has increased its shareholding in Dairibord Malawi Limited (DML) to 68,4 percent from 60 percent, according to the Herald Newspaper of Zimbabwe.

Group chairman Timothy Chiganze told shareholders in the group’s financial statement for the six months ended June 30, 2011 that the transaction was funded through a dividend declared by the company.

According to the paper, the Zimbabwe Stock Exchange (ZSE)-listed firm increased its interests in DML through the acquisition of 8,4 percent equity.

Other shareholders in the Malawi operations include National Investment Trust of Malawi, which controls 22,8 percent and the Dairibord Share Ownership Trust, which owns the remaining 8,8 percent.

Dairibord is expected to spend about US$7 million this year, to recapitalise the company, which is not operating viably.

“The funding plan for the company has been protracted, affecting the capitalisation of the company,” said Chiganze. “Discussions are currently underway…to find a solution.”

For the six months under review, Dairibord turned over US$42,4 million, representing a 35 percent growth compared with the same period last year.

Total operating costs grew 38 percent due to increasing costs.

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