Last checked at 6 Apr 2018 14:00
6 April 2018
Zambeef Products plc
("Zambeef" or the "Group")
Zampalm Transaction
Zambeef (AIM: ZAM), the fully integrated cold chain foods business with operations in Zambia, Nigeria and Ghana, is pleased to provide an update on the Zampalm transaction.
As was announced on 6 September 2017, Zambeef entered into a Share Sale Agreement, a Shareholders' Agreement and a Management Agreement (together, the "Agreements") with the Industrial Development Corporation of Zambia Limited ("IDC") for the sale of 90 per cent. of Zambeef's shareholding in its wholly owned subsidiary, Zampalm Limited ("Zampalm") to IDC for a cash consideration of USD16 million (the "Consideration") (the "Transaction").
We are pleased to advise that all the conditions precedent to the Transaction were completed on 6 April 2018 and Zambeef has received the cash consideration of USD16 million. Zambeef is entitled to up to a further USD2 million in cash consideration, subject to certain performance milestones being achieved by Zampalm over the three years from 2018 to 2020. The Transaction is expected to result in the Group reporting a loss on disposal of a discontinued activity of circa USD 2.3 million.
The Transaction is aligned with the Group's strategy of focusing on its core business of the production and retailing of cold chain meat and dairy products, cropping and stock feed. The sale proceeds will be used to further pay down the Group's debt and thus reduce gearing and interest costs.
For further information, please contact: | |
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Zambeef Products plc | Tel: +260 (0) 211 369003 |
Francis Grogan, Joint Chief Executive Officer Tim Pollock, Joint Chief Executive Officer | |
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Strand Hanson Limited | Tel: +44 (0) 20 7409 3494 |
James Spinney | |
Ritchie Balmer | |
Frederick Twist | |
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FinnCap | Tel: +44 (0) 20 7220 0500 |
Emily Morris Christopher Raggett | |
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Powerscourt | Tel: +44 (0)20 7250 1446 |
Nick Dibden | |
Isabelle Saber
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Notes to the editors
Information on Zambeef
The Zambeef Group is one of the largest integrated cold chain food producers in Zambia, involved in the production, processing, distribution and retailing of beef, chicken, pork, milk, eggs, dairy products, fish, flour and stock feed. The Group also has large cereal row cropping operations (principally maize, soya beans and wheat), with approximately 7,971 hectares of row crops under irrigation, which are planted twice a year and a further 8,623 hectares of rain-fed/dry-land crops available for planting each year. Further information can be found on www.zambeefplc.com
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
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