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Dairibord Holdings Limited a listed food and milk processor has warned shareholders to exercise caution when dealing in the company’s shares as it is still pursuing merger and acquisition negotiations with an unlisted entity.
In a cautionary statement to shareholders Dairboard Holdings said:
“Shareholders are advised that Dairibord Holdings Limited is still in discussions with an unlisted entity, for a merger and acquisition transaction, which if successfully concluded will have a material effect on the price of the company’s shares,” said the milk processor in an statement.
“Accordingly, shareholders are advised to continue exercising caution when dealing in the company’s shares until further notice.”
In the third quarter of last year, the group finalised the disposal of Dairibord Malawi and at the time of the disposal, liabilities of the subsidiary exceeded assets.
In its trading update for the period ended 30 June 2020 Dairibord said overall performance was not spared by headwinds in the operating environment. Raw milk intake was down from prior year largely due to escalating cost of stock feed affecting milk production.
The company’s share of national milk production, however, remains high at 38 percent.
“Sales volume growth was impacted by reduced demand, particularly April and May due to Covid-19 restrictions,” it said.
The company said its exports strategy achieved growth over the same period in 2019 despite 2020 targets being impacted by Covid-19 restrictions, depreciating regional currencies, and regional recessionary pressures.
The period was characterised by increasing input costs against limited ability to adjust selling prices.
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