Further to the announcement of 3 February 2015, Zambeef (AIM:ZAM), the fully integrated agri-business with operations in Zambia, Nigeria and Ghana, is pleased to announce completion of the transaction regarding 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 of USD26.43 million. Furthermore, in line with the SPA, all of Zamanita’s third party financial debt has also been transferred out of the Group, amounting to USD11.1 million.
The final Consideration of USD26.43 million has been 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:
- In terms of the Sale and Purchase Agreement, Zambeef is required 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 that Zambeef shall obtain the New Lease Agreement within 30 Business Days of the Completion Date.
Commenting on completion of the Transaction, Joint Chief Executive of Zambeef, Carl Irwin said: “The completion of the sale of Zamanita is an important transaction for Zambeef as it narrows our operational focus, reduces our exposure to foreign currency and commodity price fluctuations and 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
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