Diversification brings stability to Padenga holdings
Padenga Holdings, a Zimbabwe-based crocodile skin processor who provides materials for luxury handbags and shoes, has announced the shareholder approval to acquire the remaining 49.9% shares in gold mining investment firm Dallaglio investments.
The move will give Padenga holdings full control of the business.
Padenga holdings is a major supplier of crocodile skins to French tannery TCIM, part of the Hermès Cuirs Précieux (HCP) group and is accountable for almost 85% of the global supply of Nile crocodile skins to high end luxury fashion brands.
A statement made to local media said “Any threat to Padenga's supply agreement with TCIM could jeopardise Padenga's entire skin business. Hence, by acquiring the rest of Dallaglio, the company achieves diversification from exposure to industry risk and reduces lower earnings volatility in the skins market. Financial synergy and potential for higher earnings potential Dallaglio presents Padenga with higher earnings potential,"
