(Alliance News) - Zambeef Products PLC on Friday said it has entered into an addendum agreement extending the completion/long-stop date for its Sinazongwe farm disposal.
The Africa-focused food producer said the date has been extended to April 7 from March 15, but expects the deal to complete before the end of the new date.
"The extension is principally due to a delay in satisfying certain of the conditions precedent, which are beyond Zambeef's control, relating to properties/farm security re-structuring," Zambeef said.
Zambeef Products agreed to sell the Sinazongwe farming estate to Chenguang Biotech Zambia Agri-Dev Ltd for USD10 million in September 2019.
Chenguang Biotech is a Chinese biotechnology company which produces and supplies natural plant extraction for paprika oleoresin, capsicum oleoresin and marigold oleoresin.
On Friday, Zambeef said: "As previously announced, the disposal of Sinazongwe farm is a manifestation of the group's stated strategy to focus on its core business of producing and retailing cold chain meat and dairy products and stockfeed. The net sale proceeds will largely be used to pay down the group's debt and thus reduce gearing and interest costs."
Shares in Zambeef Products were 3.5% lower in London on Friday at 4.10 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Zambeef Prod. (ZAM)