Zambeef Products PLC Update on Disposal of Sinazongwe Farm (1330J)
08 April 2020 - 4:00PM
UK Regulatory
TIDMZAM
RNS Number : 1330J
Zambeef Products PLC
08 April 2020
8 April 2020
Zambeef Products plc
("Zambeef" or the "Group")
Update on Disposal of Sinazongwe Farm
Further to the Company's announcement of 17 September 2019 and
13 March 2020, 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 a Second Side
Agreement with Chenguang Biotech (Zambia) Agri-Dev Limited
("Chenguang") extending the Completion/Long-Stop date for the
Sinazongwe Farm disposal (the "Transaction") from 7 April 2020 to
24 April 2020.
Zambeef has duly fulfilled the Conditions Precedent as set out
in the binding sale and purchase agreement (the "SPA") and is ready
to complete the Transaction. Chenguang, however, has advised the
Company that it is unable to complete the Transaction on the
Completion Date of 7 April 2020 due to the coronavirus pandemic
resulting in a delay in converting the balance of the Purchase
Price in the sum of USD9,000,000 from Chinese Yuan into US Dollars,
and then transferring the same to Zambia.
The parties have therefore agreed to extend the Completion Date
to 24 April 2020, in accordance with the terms in the Second Side
Agreement, which also states that the balance of the Purchase Price
shall now be paid by Chenguang to Zambeef as follows:
a) USD3,000,000 to be paid on or before 10 April 2020; and
b) USD6,000,000 to be paid on or before 24 April 2020 ("Final Instalment").
Completion of the Transaction shall be subject at all times to
Zambeef receiving the Final Instalment. Zambeef shall only deliver
to Chenguang the completion documents set out in the SPA after
payment of the Final Instalment has been received.
The Condition Subsequent set out in the Addendum Agreement (as
announced on 13 March 2020) relating to Zambeef's obligation to
obtain the subdivision of approximately 20 hectares of the
Remaining Extent of Farm No 4906 (Feedlot and Abattoir) has also
been extended from 29 May 2020 to 19 June 2020.
All other Conditions Precedent as set out in the SPA have been
satisfied by both parties.
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
Faith Mukutu, Chief Financial 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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