Business
Disposal of Sinazongwe Farm for USD10 million
Disposal of Sinazongwe Farm for USD10 million.
About this update from Zambeef Products Plc
[{"type":"text","content":"\n \nRNS Number : 6213M Zambeef Products PLC 17 September 2019 \n\n17 September 2019\n \nZambeef Products plc\n(\"Zambeef\" or the \"Group\")\n \nDisposal of Sinazongwe Farm for USD10 million\n \nZambeef (AIM: ZAM), the fully integrated cold chain food processing and retailing group with operations in Zambia, Nigeria and Ghana, announces that, in line with its strategy of focussing on its core business, disposing of low-performing and/or non-core assets and reducing gearing/debt, it has entered into a binding Sale and Purchase Agreement (\"SPA\") with Chenguang Biotech (Zambia) Agri-Dev Limited (\"Chenguang\") for the sale, subject to the fulfilment of certain conditions precedent, of Zambeef's Sinazongwe Farm for a cash consideration of USD10 million (the \"Transaction\"). The key terms of the Transaction are summarised below:\n \n1) Purchase Price: USD10m\n \n2) Properties/Farm:\na) Remaining Extent of Farm No. 4906 (R/E of F4906) with an area of c.2,521 Ha;\nb) Lot No. 18835/M with an area of c.3 Ha;\nc) Lot No. 18836/M with an area of c.5 Ha.\n \n3) Excluded Assets:\nThe Transaction excludes the following assets:\na) Crops growing and/or stored on the Farm;\nb) Feedlot and Abattoir (c.20 Ha), which will separately be sub-divided and remain in the name, title and ownership of Zambeef;\nc) Plant, equipment and machinery relating to the Feedlot and Abattoir.\n \n4) Payment Terms: \na) On signing the SPA - a Deposit of 10 per cent. (USD1m) of the Purchase Price (\"Deposit\"); \nb) Balance of 90 per cent. (USD9m) to be paid on or around the Completion Date.\n \n5) Completion Date:\na) On or before 15 March 2020;\nb) Such other Completion Date as may be mutually agreed in writing by the parties.\n \n6) Conditions Precedent:\na) Zambeef Conditions Precedent:\ni.) Sub-division of the Feedlot and Abattoir (c.20 Ha) from the R/E of F4906;\nii.) Obtaining state consent to assign the Properties - subject to receiving Chenguang's Zambia Development Agency (\"ZDA\") investment license;\ni...