Zambeef Products PLC Update on Disposal of Sinazongwe Farm (1054G)
March 13 2020 - 8:00AM
UK Regulatory
TIDMZAM
RNS Number : 1054G
Zambeef Products PLC
13 March 2020
13 March 2020
Zambeef Products plc
("Zambeef" or the "Group")
Update on Disposal of Sinazongwe Farm
Further to the Company's announcement of 17 September 2019,
Zambeef (AIM: ZAM), the fully integrated cold chain food processing
and retailing group with operations in Zambia, Nigeria and Ghana,
announces that it has entered into an Addendum Agreement extending
the Completion/Long-Stop date for the Sinazongwe Farm disposal (the
"Transaction") from 15 March 2020 to 7 April 2020 (the
"Extension"). It is the Company's expectation though that the
Transaction will complete in advance of the Extension.
The Extension is principally due to a delay in satisfying
certain of the Conditions Precedent (CPs), which are beyond
Zambeef's control, relating to Properties/Farm security
re-structuring (see below). The CPs yet to be satisfied
include:
1) Discharge the Deg-Deutsche Investtitions-Und
Entwicklungsgesellschaft Mbh mortgages ("DEG Mortgages") over the
Properties/Farm;
2) Sub-division of the Feedlot and Abattoir (c.20 Ha) from the R/E of F4906; and
3) Obtaining state consent to assign the properties.
As a result of this delay of the above CPs, we have also agreed
with Chenguang that CP number
2 above (sub-division of the Feedlot and Abattoir) shall now
become a Condition Subsequent,
which shall be fulfilled on or before 29 May 2020 or such other
date as may be mutually
agreed in writing by the parties.
All other CPs as set out in the Sale and Purchase Agreement
announced on 17 September 2019 have been satisfied.
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.
For more information, please visit www.zambeefplc.com
or contact:
Zambeef Products plc Tel: +260 (0) 211 369003
Walter Roodt, Chief Executive Officer
Strand Hanson Limited Tel: +44 (0) 20 7409
James Spinney 3494
Ritchie Balmer
Rob Patrick
Finncap Tel: +44 (0) 20 7220
Christopher Raggett 0500
Powerscourt Tel: +44 (0)20 7250
Nick Dibden 1446
Bethany Johannsen
Pangaea Securities Tel: +260 (0) 211 220
Wendy Tembo 707
Notes to the editors
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 7,973 hectares of row crops under
irrigation, which are planted twice a year and a further 8,776
hectares of rain-fed/dry-land crops available for planting each
year.
Chenguang Biotech (Zambia) Agri-Dev Limited is a subsidiary of
the C henguang Biotech Group Co. Limited based in China (" CCGB").
CCGB is a listed company on the Shenzhen stock exchange with 22
subsidiary companies. The Chenguang Group is one of the worlds
leading producers and suppliers of natural plant extraction for
paprika oleoresin, capsicum oleoresin and marigold oleoresin. The
Chenguang Group also manufactures natural pigments, natural spice
extracts, essential oils, natural nutrient and medicinal extracts
and protein.
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. Upon the
publication of this announcement via Regulatory Information
Service, this inside information is now considered to be in the
public domain.
- Ends -
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END
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