Zambeef Products PLC Zampalm Transaction (1497K)
April 06 2018 - 8:00AM
UK Regulatory
TIDMZAM
RNS Number : 1497K
Zambeef Products PLC
06 April 2018
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:
Zambeef Products plc Tel: +260 (0)
211 369003
Francis Grogan, Joint Chief Executive Officer
Tim Pollock, Joint Chief Executive Officer
Strand Hanson Limited Tel: +44 (0)
20 7409 3494
James Spinney
Ritchie Balmer
Frederick Twist
FinnCap Tel: +44 (0)
20 7220 0500
Emily Morris
Christopher Raggett
Powerscourt Tel: +44 (0)20
7250 1446
Nick Dibden
Isabelle Saber
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").
-Ends-
This information is provided by RNS
The company news service from the London Stock Exchange
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