Business
Related Party Transactions
Related Party Transactions.
About this update from Zambeef Products Plc
[{"type":"text","content":"\n \n \n RNS Number : 6200M\n Zambeef Products PLC\n 12 May 2020\n \n \n \n \n Zambeef Products plc\n \n \n (\"Zambeef\" or the \"Group\")\n \n \n \n \n Related Party Transactions\n \n Zambeef (AIM: ZAM), the fully integrated food producer with operations in Zambia, Nigeria and Ghana, announces the following related party transactions involving Non-Executive Director, Mr. John Rabb, and the former Chief Executive Officer, Mr. Francis Grogan, over cattle purchases for the calendar year 2020.\n Mr. John Rabb is one of a class of beneficiaries in Sussex Trust, an organisation that owns 100% shareholding in Wellspring Ltd (\"Wellspring\") and Mr. Francis Grogan is a 50% shareholder in Chisamba Ranching and Cropping Ltd (\"CRC\"). The two companies will be contracted to supply cattle to the Company commencing in April 2020 (and ending December 2020), as they have done in previous years.\n Based on 2019 supplied quantities, Wellspring is expected to supply approximately 1,343 cattle with an approximate value of K4,600,185 (c. US$260,000) and CRC is expected to supply 1,480 cattle with an approximate value of K7,830,617 (c. US$440,000).\n Further information\n Further details on the cattle supply agreements are set out below:\n \n Wellspring CRC\n \n \n Period of Contract April -December 2020 April -December 2020\n \n \n Number of Cattle 1,343 1,480\n \n \n Type of cattle. Qty. Price/kg live wt. Qty. Price/kg live wt. \n \n \n Culled Bulls 25 K11.70 30 K11.10\n \n \n Culled Cows 504 K11.70 150 K11.10 \n \n \n Steers/Heifers. 814 K14.50 1,300 14.60 \n \n \n \n \n Zambeef buys weaners (heifer and steers) culled cows and Bulls from these two suppliers and these are placed in the feedlot for about six months before being slaughtered. For the year 2019, CRC supplied 1,522 cattle and Wellspring supplied 1,056 cattle. Zambeef also buys cattle from other traditional and commercial farmers throughout the year. On average, the Company keeps about 8,000 cattle in the feedlot during the year.\n Related Party Transactions\n The cattle supply agreements with Wellspring and CRC fall to be treated as related party transactions pursu...