Photo: Pexels | Alexas Fotos
Maoto confirmed in an email that Park Village Auctions, acting as transactional advisors, have concluded the ‘Expression of Interest’ phase, with shortlisted bidders now in the process of assessing the virtual data room, conducting site inspections, and engaging in question-and-answer sessions with management, as well as the business rescue team.
The names of the bidders are confidential, but Maoto confirmed that key criteria guiding the selection included the ability to provide capital injection, demonstrate turnaround expertise, and substantial experience in the poultry sector. The ability to retain employees and transformation credentials are also being prioritised.
Competition Commission compliance
Along with this, investors will need to comply with the requirements of the Competition Commission and, where applicable, the relevant laws to mergers and acquisitions.
“A suitable strategic partner is expected to contribute significant technical, operational, and marketing expertise. Their established infrastructure, financial capacity, and existing customer network will be critical in driving Daybreak’s turnaround and ensuring its long-term sustainability,” Maoto said.
Daybreak has already disposed of its non-core Howick property and hatchery in October, with further instructions awaited on the next phase of asset disposals.
On the labour front, Maoto said that retrenchments form part of the adopted business rescue plan, and will occur during the reactivation phase. The number of retrenchments will greatly depend on the level of support received from Temporary Employer Relief Scheme (TERS).
“We are awaiting a decision from TERS before any formal retrenchment process can begin. Engagements with unions, government departments, the Public Investment Corporation (PIC) and employee representatives are ongoing to minimise job losses.”
Steady operational recovery
Operational recovery is progressing steadily. Maoto said Daybreak’s hatchery and breeder sites are performing in line with expectations, with three sites repopulated in August and September and more scheduled in the coming months.
Production volumes are tracking positively, with output expected to reach 1.5 million day-old chicks per week by mid-March 2026.
The business rescue team is still in discussions with the PIC, as a shareholder representative, and several funding institutions to secure additional financial support for the reactivation phase while the strategic equity partner process continues.
Despite Daybreak’s recent challenges, creditor confidence appears stable.
“We are grateful for the support shown by the general body of creditors, and the company continues to cooperate with suppliers and stakeholders to restore operations. Daybreak’s broader market-recovery and positioning strategy will be clarified once the reactivation phase is underway,” said Maoto.
