US food multinational Cargill has agreed to acquire the edible oil and soybean meal subsidiary of listed agribusiness Zambeef for $25.7m (£17m).
News of the sale to one of the largest privately held corporation in the US – with revenues of almost $140bn – sent Zambeef’s share price climbing by 12% to 10.1p.
Zamanita, which serves the domestic and export markets as well as selling into the domestic refined oils market, is one of the largest edible oil and soybean meal producers in Zambia.
The business posted a loss after tax of $2m on sales of $67.9m in the year ended 30 September 2014. Its net assets at the year end were $21.9m.
“The sale of Zamanita is an important transaction for Zambeef as it narrows our operational focus, reduces our exposure to foreign currency and commodity price fluctuations and strengthens our balance sheet,” said Zambeef joint chief executive Carl Irwin. “I am delighted that Cargill has agreed to retain Zamanita’s staff.”
There would be no change to the group’s board of directors or senior management team and its operational focus would remain unchanged, Zambeef added.
Zambeef, a beef producer with operations in Zambia, Nigeria and Ghana, acquired Zamanita for $16m in January 2008.
In a statement to the London Stock Exchange it said the oil seed crushing industry had changed over the past five years with a number of new participants entering the market. “As a result, it is no longer essential for Zambeef to be involved in this industry in order to secure its required supply of high quality soybean meal at a competitive price,” it added.
Zambeef will now concentrate on growing its core business of retailing cold chain meat and dairy products.
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