Zambeef addresses ownership rumors

ZAMBIA – Zambeef Products PLC has issued a statement addressing rumors circulating in both traditional and social media regarding a possible takeover by British International Investments (BII). 

The company clarified that BII, formerly known as the Commonwealth Development Corporation Group (CDC), has not taken over ownership, contrary to public speculation.

The Zambeef Board of Directors reminded shareholders and other interested parties that BII’s involvement dates back to 2016 when the investment firm acquired 52.6 million ordinary shares and over 100 million convertible redeemable preference shares in the company. 

These details were previously disclosed in a public announcement made on August 4, 2016, and are also available on Zambeef’s website as part of the Investment Agreement.

The week starting on September 16th marked the eighth anniversary of BII’s investment in Zambeef, which led to an increase in BII’s conversion rights on its preference shares. 

Financially, Zambeef has faced a difficult period, with the company projecting a significant shortfall in its revenue and gross profit for the fiscal year ending September 30, 2024. 

According to its interim report, revenue and gross profit are expected to fall approximately 15% below market expectations. 

The company attributes this to operational challenges, exacerbated by the depreciating local currency.

The company’s profit before tax is anticipated to be 30% lower than market forecasts, primarily due to higher financing costs and the impairment of an investment in an associate. 

Consequently, the profit after tax is expected to be around 55% below market expectations, with the company also forecasting a loss from assets held for sale.

The first half of 2024 has been particularly challenging for Zambeef, which has struggled with a difficult economic environment. 

Factors such as weak consumer spending, tight monetary policies by Zambia’s central bank, and limited government expenditure have created a challenging landscape for the company. 

The broader macroeconomic instability, worsened by delays in Zambia’s debt restructuring, has also contributed to Zambeef’s difficulties.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE