ZAMBEEF | Completion of Zamanita Disposal Transaction – (AIM)

By Published On: June 1st, 2015Categories: Corporate announcement

Further to the announcements of 3 February 2015, 16 March 2015 and 8 April 2015, Zambeef (AIM:ZAM), the fully integrated agri-business with operations in Zambia, Nigeria and Ghana, is pleased to announce completion of the disposal of its wholly owned subsidiary, Zamanita Limited (“Zamanita”), to Cargill Holdings BV (“Cargill”).

In line with the Sale and Purchase Agreement (“SPA”), the original Consideration of USD25.7 million has been adjusted for estimated closing working capital less estimated net financial debt, resulting in a final consideration figure payable by Cargill to Zambeef of USD26.43 million. Furthermore, in line with the SPA, all of Zamanita’s third party financial debt (amounting to USD11.1 million) has been transferred out of the Group.

The final consideration of USD26.43 million was transferred by Cargill to Zambeef on 1 June 2015.

Of the eight conditions precedent required for Completion, seven have been fully satisfied and one has been varied as follows:

  • The terms of the SPA required Zambeef to procure that Zamanita enters into a new lease agreement in respect of Stand number 4816 / private siding number 1143 (“New Lease Agreement”). The parties have agreed to vary this condition precedent so that Zambeef shall now obtain the New Lease Agreement within 30 Business Days of the Completion Date, of 1 June 2015.

Commenting, Joint Chief Executive of Zambeef, Carl Irwin said: “The completion of the sale of Zamanita is an important transaction for Zambeef as it rationalises our operational focus, reduces our exposure to foreign currency and commodity price fluctuations and, most importantly, strengthens our balance sheet.”

For further information, please contact:

Zambeef Products plc – Tel: +260 (0) 211 369003
Carl Irwin, Joint CEO
Francis Grogan, Joint CEO

Strand Hanson Limited- Tel: +44 (0) 20 7409 3494
Angela Hallett
James Spinney

Panmure Gordon – Tel: +44 (0) 20 7886 2500
Hugh Morgan
Tom Salvesen
Peter Steel

finncap – Tel: +44 (0) 20 7220 0553
Raymond Greaves
Simon Johnson
Joanna Weaving

Buchanan – Tel: +44 (0) 20 7466 5000
Mark Edwards
Sophie McNulty
Robbie Ceiriog-Hughes

www.buchanan.uk.com

Notes to Editors

Information on Zambeef

The Zambeef Group is one of the largest integrated agri-businesses in Zambia, involved in the primary production, processing, distribution and retailing of beef, chicken, pork, milk, eggs, dairy products, flour and stock feed, throughout Zambia, as well as Nigeria and Ghana. The Group is also one of the largest cereal row cropping operations in Zambia, with approximately 8,120 hectares of irrigated and approximately 8,480 hectares of rain-fed, arable, developed land available for planting each year.

The Group has approximately 6,200 employees.

Further information can be found on www.zambeefplc.com

This publication is in line with standard practice for London Stock Exchange AIM listed Companies.

Further to the announcements of 3 February 2015, 16 March 2015 and 8 April 2015, Zambeef (AIM:ZAM), the fully integrated agri-business with operations in Zambia, Nigeria and Ghana, is pleased to announce completion of the disposal of its wholly owned subsidiary, Zamanita Limited (“Zamanita”), to Cargill Holdings BV (“Cargill”).

In line with the Sale and Purchase Agreement (“SPA”), the original Consideration of USD25.7 million has been adjusted for estimated closing working capital less estimated net financial debt, resulting in a final consideration figure payable by Cargill to Zambeef of USD26.43 million. Furthermore, in line with the SPA, all of Zamanita’s third party financial debt (amounting to USD11.1 million) has been transferred out of the Group.

The final consideration of USD26.43 million was transferred by Cargill to Zambeef on 1 June 2015.

Of the eight conditions precedent required for Completion, seven have been fully satisfied and one has been varied as follows:

  • The terms of the SPA required Zambeef to procure that Zamanita enters into a new lease agreement in respect of Stand number 4816 / private siding number 1143 (“New Lease Agreement”). The parties have agreed to vary this condition precedent so that Zambeef shall now obtain the New Lease Agreement within 30 Business Days of the Completion Date, of 1 June 2015.

Commenting, Joint Chief Executive of Zambeef, Carl Irwin said: “The completion of the sale of Zamanita is an important transaction for Zambeef as it rationalises our operational focus, reduces our exposure to foreign currency and commodity price fluctuations and, most importantly, strengthens our balance sheet.”

For further information, please contact:

Zambeef Products plc – Tel: +260 (0) 211 369003
Carl Irwin, Joint CEO
Francis Grogan, Joint CEO

Strand Hanson Limited- Tel: +44 (0) 20 7409 3494
Angela Hallett
James Spinney

Panmure Gordon – Tel: +44 (0) 20 7886 2500
Hugh Morgan
Tom Salvesen
Peter Steel

finncap – Tel: +44 (0) 20 7220 0553
Raymond Greaves
Simon Johnson
Joanna Weaving

Buchanan – Tel: +44 (0) 20 7466 5000
Mark Edwards
Sophie McNulty
Robbie Ceiriog-Hughes

www.buchanan.uk.com

Notes to Editors

Information on Zambeef

The Zambeef Group is one of the largest integrated agri-businesses in Zambia, involved in the primary production, processing, distribution and retailing of beef, chicken, pork, milk, eggs, dairy products, flour and stock feed, throughout Zambia, as well as Nigeria and Ghana. The Group is also one of the largest cereal row cropping operations in Zambia, with approximately 8,120 hectares of irrigated and approximately 8,480 hectares of rain-fed, arable, developed land available for planting each year.

The Group has approximately 6,200 employees.

Further information can be found on www.zambeefplc.com

This publication is in line with standard practice for London Stock Exchange AIM listed Companies.

Further to the announcements of 3 February 2015, 16 March 2015 and 8 April 2015, Zambeef (AIM:ZAM), the fully integrated agri-business with operations in Zambia, Nigeria and Ghana, is pleased to announce completion of the disposal of its wholly owned subsidiary, Zamanita Limited (“Zamanita”), to Cargill Holdings BV (“Cargill”).

In line with the Sale and Purchase Agreement (“SPA”), the original Consideration of USD25.7 million has been adjusted for estimated closing working capital less estimated net financial debt, resulting in a final consideration figure payable by Cargill to Zambeef of USD26.43 million. Furthermore, in line with the SPA, all of Zamanita’s third party financial debt (amounting to USD11.1 million) has been transferred out of the Group.

The final consideration of USD26.43 million was transferred by Cargill to Zambeef on 1 June 2015.

Of the eight conditions precedent required for Completion, seven have been fully satisfied and one has been varied as follows:

  • The terms of the SPA required Zambeef to procure that Zamanita enters into a new lease agreement in respect of Stand number 4816 / private siding number 1143 (“New Lease Agreement”). The parties have agreed to vary this condition precedent so that Zambeef shall now obtain the New Lease Agreement within 30 Business Days of the Completion Date, of 1 June 2015.

Commenting, Joint Chief Executive of Zambeef, Carl Irwin said: “The completion of the sale of Zamanita is an important transaction for Zambeef as it rationalises our operational focus, reduces our exposure to foreign currency and commodity price fluctuations and, most importantly, strengthens our balance sheet.”

For further information, please contact:

Zambeef Products plc – Tel: +260 (0) 211 369003
Carl Irwin, Joint CEO
Francis Grogan, Joint CEO

Strand Hanson Limited- Tel: +44 (0) 20 7409 3494
Angela Hallett
James Spinney