Zambeef Products PLC Completion and Settlement of Put Options (3433K)
September 20 2016 - 7:00AM
UK Regulatory
TIDMZAM
RNS Number : 3433K
Zambeef Products PLC
20 September 2016
20.09.2016
Zambeef Products plc
("Zambeef" or "the Group")
Completion and Settlement of Put Options granted to RCL Foods in
respect of Zam Chick Limited and Zamhatch Limited
The Board of Directors of Zambeef (the "Board") is pleased to
announce that it has completed the settlement of the put options
granted to Rainbow Farms Investments Proprietary Limited ("RCL
Foods") in 2013 as part of the Zam Chick Limited ("Zam Chick") and
Zamhatch Limited ("Zamhatch") joint ventures entered into with RCL
Foods (the "Put Options").
As announced on 24 March 2016, Zambeef advised shareholders that
RCL Foods had exercised the Put Options on 23 March 2016, requiring
Zambeef to acquire its shares in these companies, either by means
of the issue of new ordinary shares in Zambeef ("Zambeef Shares")
and/or through the payment of cash.
As settlement of the Put Options by means of issuing Zambeef
Shares would, in the opinion of the Board, have resulted in an
unacceptable dilution of existing shareholders, the Board resolved
to settle the Put Options wholly in cash through part of the
proceeds from the US$65 million investment from CDC Group PLC
("CDC"), as announced on 4 August 2016.
As also announced on 4 August 2016 (and detailed further in the
circular sent to shareholders dated 18 August 2016):
a) Zambeef, Zam Chick and RCL Foods agreed that the RCL shares
market value for the Zam Chick Put Options is USD14,250,000;
b) Zambeef, Zamhatch and RCL Foods entered into an Interim
Settlement Agreement dated 27 July 2016, that Zambeef will pay RCL
Foods an amount of USD9,135,604 as an Interim Settlement Amount,
for the purposes of completing the Zamhatch Put Option.
As such, Zambeef has transferred today a total of USD23, 385,604
in cash to RCL Foods.
As far as the Zamhatch Put Options disputed amount is concerned,
Zambeef believes that it is due USD962,000 while the amount RCL
Foods believes is due to them is USD1,023,570. The Interim
Settlement Agreement allows either party to pursue the disputed
difference within 6 months of the Settlement Date. A further
announcement will be made when this matter has been resolved.
Zambeef Chairman, Dr Jacob Mwanza, commented: Following CDC
becoming a long-term and supportive shareholder in Zambeef through
their investment in the Group, the settlement of the Put Options is
the first step in the execution of our plan. We have enjoyed a good
working relationship with RCL Foods and expect to resolve the
disputed amount in an amicable manner."
"We continue to focus on accelerating the roll out of our new
Zambeef macro outlet stores, which is the key strategic priority of
the Group."
- Ends -
For more information please visit www.zambeefplc.com or
contact:
Zambeef Products plc Tel: +260 (0) 211
Carl Irwin, Joint Chief Executive 369003
Officer
Francis Grogan, Joint Chief
Executive Officer
Strand Hanson Limited Tel: +44 (0) 20
James Spinney 7409 3494
Ritchie Balmer
Frederick Twist
Finncap Tel: +44 (0) 20
Christopher Raggett 7220 0500
Joanna Scott
Powerscourt Tel: +44 (0)20
Nick Dibden 7250 1446
Sophie Moate
Nick Brown
Pangaea Securities Tel: +260 (0) 211
Ceaser Siwale 220 707
Wendy Tembo
About Zambeef Products Plc
Zambeef Products Plc is the largest integrated agribusiness and
food processor in Zambia, involved in the primary production,
processing, distribution and retailing of beef, chickens, pork,
milk, eggs, dairy products, fish, flour and stock feed throughout
Zambia. The Group has one of the largest cereal row cropping
operations in Africa, with a total of 24,174 hectares planted
during FY2015. The group is also in the process of rolling out its
West Africa expansion in Nigeria and Ghana.
The Group has approximately 6,200 employees.
Further information can be found on www.zambeefplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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September 20, 2016 08:00 ET (12:00 GMT)