UK government's BII seeks controlling stake in Zambia's Zambeef though share conversion

JOHANNESBURG, March 3 (Reuters) - The UK's development finance vehicle British International Investment is preparing to take a controlling stake ​in ‌Zambian food producer Zambeef in its push to back companies that help strengthen food supply in ⁠the region, its Africa head Chris Chijiutomi told Reuters.

Key ⁠details:

* BII first invested in Zambeef ​in 2016 and is the food producer's largest shareholder with an17.5% stake, including preference shares. BII intends to swap the latter into normal shares, which would lift its stake to 59.29%.

* ​A ‌majority stake would allow BII to push for changes to improve performance and expansion, Chijiutomi said.

* Zambeef said in a separate statement it is seeking approval from independent shareholders to waive their right to a mandatory takeover offer that would otherwise be triggered ​by BII's preference-share conversion.

* The Zambian Securities and Exchange Commission has granted a conditional waiver, ‌subject to that independent shareholder vote; the meeting is scheduled for March 11, according to Zambeef and BII.

* Chijiutomi said BII hopes ‌to build Zambeef into “not only a Zambian champion, but potentially a Southern African champion,” tying it to the investor's food and food security priorities.

* BII is set to launch a ​new five-year strategy this year, which will include a clearer commitment to invest in poorer frontier markets - economies ‌that are smaller, riskier and at times struggle to attract investor money.

* "We are going to dial up a focus on what we call frontier markets," he said, pointing to Sierra ⁠Leone, Zambia, ⁠Democratic Republic of Congo and Ethiopia.

* BII aims to link ‌up with African savings pools from pension funds to sovereign wealth vehicles, said Chijiutomi, pointing to partnerships with ​Nigeria’s sovereign wealth fund and ​South Africa’s Public Investment Corporation.

* Chijiutomi said Africa, which ‌accounts for about 60% of its portfolio of roughly 10 billion British pounds ($13.31 billion), remains central to BII and its focus on inclusion, productivity and climate, including renewables and sustainable agriculture.