LUSAKA, ZAMBIA – Zambeef’s noteworthy US$65 million investment agreement with CDC Group Plc has been nominated for the 2017 African Banker Awards Deal of the Year – Equity category.
Zambeef, which is listed on both the Lusaka and London stock exchanges, entered into an agreement with CDC that saw the investment firm acquire a 17.5 per cent stake in the food processing company, allowing it to buy outstanding shares in both ZamChick and ZamHatch at a cost of US$23 million further consolidating its position as a local company, with the remaining funds channelled to further reducing debt levels and to fund capital ventures, as well as reduce exposure to exchange rate fluctuations.
“The investment by CDC is a measure of its confidence in Zambeef, its management and business model. And the nomination by the African Banker Awards reinforces the confidence that financial institutions have in organizations such as ourselves,” said Zambeef Chairman Dr Jacob Mwanza.
Under the transaction CDC invested US$65 million in Zambeef: US$9.5 million in return for 52.6 million ordinary shares and US$55.5 million for 100 million convertible redeemable preference shares resulting in a 17.5 percent stake in Zambeef. It received much acclaim, with Zambeef shares on the Alternative Investment Market (AIM) seeing a rise of as much as 50 percent following the announcement.
Chair of the Awards Committee Omar Ben Yedder, the Group Publisher and Managing Director of IC Publications Group which publishes the African Banker Magazine, noted that despite difficult trading conditions across many African countries the financial services sector managed to maintain positive developments by responding to the challenges facing businesses and economies across the continent. This was reflected in the activity both on the equity and debt sectors, although there was a notable slowdown in activity across both debt and equity markets in general, he noted.
Other award categories include African Bank of the Year, Investment Bank of the Year, Financial Inclusion Award, Socially Responsible Bank of the Year, Innovation in Banking Award, Deal of the Year – Debt and Infrastructure Deal of the Year.
The awards are held under the patronage of the African Development Bank and sponsored by major financial institutions across Africa.
Zambeef has enjoyed a long-standing relationship with CDC, which has been a part of many successful and significant investments across several sectors in the country. The move to partner with the investment firm is in line with the strategic objectives set out by the company to reduce gearing and focus on its core business of cold chain food processing and retailing, allowing it to continue to roll out expansion of its distribution and retailing platform in Zambia and the region.
The National Pension Scheme Authority (NAPSA) – to which every employee and employer in the country contributes – is the single largest Zambian shareholder in Zambeef, owning some 25 million shares amounting to 10 percent of the company.
About Zambeef Products Plc
Zambeef Products Plc is the largest integrated agribusiness and food processing company in Zambia and one of the largest in the region.
The group is principally involved in the production, processing, distribution and retailing of beef, chicken, pork, milk, dairy products, eggs, stockfeed and flour. The group also has large row cropping operations (principally maize, soya beans and wheat), planting 16,500 hectares in summer and 8,000 hectares in winter. The group is also expanding its West Africa operations in Nigeria and Ghana.
The company slaughters around 70,000 beef cattle, 6.75million chickens and 70,000 pigs per annum, while also processing 16 million litres of milk, producing 150,000 tons of stockfeed, 60 million eggs, 78,000 pairs of shoes and processes 97,500 hides in its tannery per year.
It has 177 retail outlets throughout Zambia and West Africa.
Zambeef employs over 6,000 people with a total of K307 million paid in remuneration and benefits in the last year, and contributed K144m to Government in taxes and duties.
More information is available at www.zambeefplc.com