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Zambeef Warns Investors as BII Conversion Rights May Impact Share Price

Zambeef Products Plc has issued a further cautionary announcement to shareholders regarding the potential conversion of preference shares held by British International Investment plc (BII), formerly CDC Group Plc.

In 2016, BII acquired 52.6 million ordinary shares and 100,057,658 convertible redeemable preference shares in Zambeef under an investment agreement dated 4 August 2016. On 16 September 2024, marking the eighth anniversary of BII’s investment, the conversion terms on these preference shares changed. BII’s conversion rights increased from a one-for-one new ordinary share to a ratio of one preference share for 3.0833 recurring new ordinary shares.

Zambeef has warned that any conversion of these preference shares into ordinary shares could have a material impact on the company’s share price. In line with Lusaka Securities Exchange (LuSE) requirements, shareholders have been advised to exercise caution when dealing in the company’s securities.

The announcement was approved by the LuSE, the Securities and Exchange Commission, and Zambeef Products Plc.

Zambeef, the largest integrated cold chain food products and agribusiness company in Zambia, operates across Zambia, Nigeria, and Ghana. With 236 retail outlets in Zambia and West Africa, it is a leading producer of beef, chicken, pork, dairy, fish, flour, and stockfeed, and runs extensive row cropping operations covering more than 16,000 hectares.

For more information, shareholders have been directed to Zambeef’s website and to contact the company’s management, sponsoring broker Autus Securities Limited, or nominated adviser Cavendish Capital Markets Ltd.

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