Oliver Kazunga Senior Business Reporter
DAIRIBORD Holdings Limited is seeking shareholder approval to increase stake for its employee share ownership trust to 17,9 million from 10 million as part of an initiative to retain the “appropriate” calibre of workers.
In a notice of its upcoming Annual General Meeting scheduled for June 30, 2020, the group said it was seeking with or without modification that:
“The directors of the company be and are hereby authorised to approve the reservation of 7 900 043 ordinary shares out of the authorised unissued share capital of the company as of the date hereof and the issue and allotment of such ordinary shares to the 2005 Dairibord Zimbabwe Limited (DZL) Employee Share Trust such that the number of shares held by the trust in the company increases from 10 000 000 shares to 17 900 043 shares.”
As a special resolution, the group in terms of Section 130 (1) of the Zimbabwe Stock Exchange Listings Requirements, has proposed to waive any pre-emptive rights of the shareholders in respect of shares to be issued and allotted pursuant to the 2005 DZL Holdings Employee Share Trust.
“The company believes that it is important to attract, motivate and retain employees of the appropriate calibre and to align their interests with those of shareholders.”
Against this background, the company on April 15, 2005 established the DZL Holdings Employee Share Trust.
The trust was granted a loan in the amount of $10 million by the company to acquire 10 million shares (constituting approximately 3,15 percent of the total issued share capital of the company at the time of establishment) at par value.
The trust is run by a board of trustees, which acts in terms of the Trust Deed rules and also on the directives of the directors of the firm.
The 10 million shares held by the trust presently constitute 2,79 percent of the total issued share capital of the dairy processor and marketer.
Meanwhile, DZL announced recently in a financial statement for the year ended December 31, 2019 that it recorded a 100 percent surge in foreign currency earnings to US$3,4 million.
The company attributed the positive performance to the continued implementation of a robust export strategy.
During the prior year, turnover improved by 60 percent to $1,115 billion driven by growth in exports and necessary product price adjustments.
Sales volumes dropped by 17 percent against an industry average of 23 percent for the manufacturing sector.