Flash note: Disposal of Zamanita completed
Zambeef has sold its Zamanita subsidiary to Cargill for US$26.4m, payable in cash. Zamanita is one of the largest edible oil and soybean meal producers in Zambia, but is no longer a core business, is capital intensive, inherently lower margin than the cold store chain activities and exposed to fluctuations in global commodity prices and foreign exchange rates. The disposal is in line with the group’s stated strategy of unlocking the value of its assets. It enables management to focus on the group’s cold store chain activities and reduces potential earnings volatility. The transaction reduces the group’s level of debt, some of which is dollar denominated, and hence the exchange rate exposure. Our estimates and valuation will remain under review until the interim results are announced later this month.Zamanco Minerals Limited is an Australia-based company, which continues to seek a transaction of merit capable of becoming the primary undertaking of the Company. The Company focuses on identifying and evaluating a business opportunity. It has undertaken evaluation of a range of prospects in various industries.
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