Zambeef’s share conversion proposal moves forward

ZAMBIA – Zambeef Products PLC has welcomed British International Investment’s intention to convert its preference shares into ordinary shares, contingent on independent shareholders waiving their rights to a Mandatory Takeover Offer.

The Securities and Exchange Commission has granted BII a conditional exemption from the takeover obligation, subject to a simple majority vote by independent shareholders at an Extraordinary General Meeting scheduled for 11 March 2026.

Zambeef Chief Executive Officer Faith Mukutu said the share conversion will clarify the company’s capital structure and allow it to pursue expansion opportunities, describing the announcement as an important step in resolving a longstanding strategic matter.

BII initially invested US$65 million in Zambeef in 2016, providing long-term capital that helped settle maturing obligations, refinance debt, and expand operations and distribution networks.

Since BII’s investment, Zambeef has become Zambia’s largest integrated agri-business, reporting an operating profit of approximately US$27.3 million (ZMW640 million) in 2025 and increasing wheat production while employing over 7,000 staff across its operations.

The company operates the largest stockfeed, poultry, dairy, and farming operations in Zambia, with the potential to expand exports to neighbouring countries.

The Zambeef Board stated that converting the preference shares and securing BII’s takeover waiver would benefit shareholders by simplifying the capital structure, removing the preference share overhang that has affected market valuation, and improving the company’s ability to attract additional funding.

The conversion would also remove a limitation that has affected Zambeef’s capacity to pay dividends, and the Board has recommended that independent shareholders vote in favour of the waiver at the upcoming EGM.

Zambeef has reported strong performance in recent years, with the Zambia Revenue Authority recognising it as the leading tax-paying company in the agriculture sector for 2025, marking the second recognition in two years.

Chief Financial Officer Patrick Kalifungwa attributed the higher tax contributions to the company’s strategy to increase production capacity and supply of affordable food products in the region.

The company has been executing a US$100 million expansion program announced in 2022, investing in livestock facilities, retail improvements, and new meat processing plants.

Upgrades at Mpongwe and Chisamba farms, along with an expanded transport fleet, have been completed to enhance distribution efficiency and align livestock output with domestic meat demand.

In addition, Zambeef received the Best Agriculture Investor award in July 2025 at the Invest in Zambia International Conference, reflecting its ongoing investments and operational expansion.

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