Zimbabwe milk processor Dairibord to up employees’ shareholding to 5%

ZIMBABWE – Dairibord Zimbabwe Limited (DZL), leading milk and dairy products producer in Zimbabwe has prioritised the plan of its shareholders to consider approving an increase of employees’ stake in the company to 5 % at the forthcoming annual general meeting.

“To consider, and if deemed fit, pass with or without modification, the following ordinary resolution: 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,” DZL said.

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The DZL Holdings Employee Share Trust was formed in 2005 through a loan extended by the company which saw employees acquiring 10 million shares equivalent to around 3.15% of the total issued share capital at the time.

According to a report by The Herald, the company proposes to increase the number of shares held by the Trust by an additional 7,900,043 under similar terms as those on the first allocation.

The increase will result in the Trust holding 17,900,043 shares constituting 5% of the total issued share capital of the company.

The meeting is also expected to shelve 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,” the notice said.

Recently Coca-Cola Beverages South Africa (CCBSA) offered its 8,000 employees a slice of the company’s shares through the Ikageng Employee Share Trust created to offer workers shares and direct economic participation in the business.

Ikageng, which means “let us build ourselves” in Tswana, was launched last month and owns a 5 percent stake in Coca-Cola Fortune, the CCBSA’s parent company.

Its primary focus is to ensure that every employee receives an equal allocation of shares regardless of staff level, race or years of service.

Of the total participation units, 25 per cent would be held in reserve for future employees and the remaining 75 per cent of the participation units were allocated equally among the eligible employees, irrespective of grade or salary as at May 26.

The dividends to be paid by the Ikageng Employee Share Trust would come from Coca-Cola Fortune, based on performance and dividends declared by CCBSA.

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