HARARE — Zimbabwe’s National Social Security Authority (NSSA) is considering expanding its investment in Dairibord Holdings after acquiring an 8.5% stake in the dairy producer, potentially complicating Varun Beverages’ proposed acquisition of a larger shareholding in the company.
NSSA bought 30,434,783 Dairibord shares from Equivest Asset Management on Friday for approximately US$7 million. The pension fund is now considering whether to acquire Equivest’s remaining 21% holding, although the proposal has yet to be discussed at senior management level.
NSSA general manager Charles Shava told The Business Times that the authority was attracted by Dairibord’s potential to generate dividends as it restructures its investment portfolio towards income-producing assets.
“We bought (Dairibord shares) because we believe Dairibord is a very good asset for us,” Shava said, explaining that the authority needed liquid investments to meet its pension payment obligations.
He added that acquiring Equivest’s remaining shares remained a possibility following what he described as fruitful discussions over the initial transaction.
The potential expansion of NSSA’s stake introduces another dimension to the proposed sale of a combined 48.79% shareholding in Dairibord by Equivest, Mega Market and Mutare Mart & Exchange to India’s Varun Beverages.
The Competition and Tariff Commission (CTC) confirmed in September that it was reviewing Varun’s proposed acquisition, which could give the beverage group a controlling interest in Zimbabwe’s largest dairy producer.
Mega Market, led by Mutare businessman Shiraan Ahmed, holds more than 27% of Dairibord after steadily increasing its investment since acquiring a 10% stake in 2018.
If NSSA secures Equivest’s remaining holding, a substantial portion of the shares originally included in the proposed Varun transaction could become unavailable, potentially requiring the parties to reconsider the structure of the deal.
For NSSA, the investment reflects a broader effort to reposition its portfolio towards assets capable of delivering regular returns and supporting pension obligations. For Varun, the emergence of a major institutional investor seeking a larger stake adds a new consideration to an already significant corporate transaction.
According to the NewZwire, the development as an important test of competing investment interests in Zimbabwe’s corporate sector. The outcome could influence Dairibord’s ownership structure, the proposed entry of Varun Beverages and the role of domestic institutional capital in strategic businesses.
However, NSSA has not confirmed that it will acquire Equivest’s remaining shares, and the proposed Varun transaction remains subject to regulatory review.
