Zambeef Products plans to sell 49 per cent of its shares in its Zamchick subsidiary to a South African firm at a cost of US$14mn
The Zambian agribusiness company has entered into a sale and shareholders’ agreement with chicken processor and marketer, Rainbow Chicken.
A statement from Zambeef said, "The board of directors of Zambeef envisages employing Rainbow’s track record of technical expertise in the chicken broiler business to grow this area of the group’s operations, with a key focus on the processing of value-added and processed chicken products."
Under the new agreement, Zambeef will facilitate product sales through its existing retail outlets and grow its operations while Rainbow Chickens will provide technical specifications and standard operating procedures for broiler farms and processing facilities.
Zambeef will also be responsible for legal matters and managing the impact of any change in the Zambian legislation impacting on the company’s operations.
However, the transaction is subject to the approval of the Competition and Consumer Protection Commission (CCPC) and Rainbow Chicken obtaining the necessary approval from the South African Reserve Bank.
"Completion of the transaction is subject to certain conditions precedent, to be satisfied within 90 business days following the signing of agreements, including written confirmation that the purchaser is satisfied with the accounts of Zamchick and the execution relevant lease agreement between Zamchick and Zambeef," the statement added.