Following the publication of a Cautionary Update on the Lusaka Stock Exchange (LuSE), Zambeef Products PLC (LUSE: ZAMBEEF), (AIM: ZAM), has announced that they are still in discussions with a third party regarding the potential sale of Zamanita Ltd, its wholly-owned subsidiary and one of the country’s largest producers of edible oil and soya meal.
While the Group did not provide further financial details regarding the potential transaction, its completion is expected to be substantial under the AIM Rules for Companies.
According to the Cautionary Update, the transaction remains “subject to inter alia, due diligence and certain conditions precedent and there can be no certainty that any binding offer for Zamanita will ultimately be made.”
With reported revenue of ZMW 399.2 million, Zamanita produced a gross profit of ZMW 58.3 million in 2014.
Shares of Zambeef Products rose after revealing the potential sale of Zamanita in early December following a reported fall in revenue and foreign exchange losses for the financial year that ended in September.