Last checked at 1 Jun 2015 16:13
For Immediate Release | 1 June 2015 |
Zambeef Products Plc
("Zambeef" or the "Group")
Completion of Zamanita Disposal Transaction
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
Carl Irwin, Joint CEO Tel: +260 (0) 211 369003
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
Raymond Greaves Tel: +44 (0) 20 7220 0553
Simon Johnson
Joanna Weaving
Buchanan
Mark Edwards Tel: +44 (0) 20 7466 5000
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.