Zambeef Products Share Discussion Threads

[cjohn] 29/4/2020 18:59

It's not brewing! It's already happened! Sinazongwe farm sold - as long anticipated - for $10m on April 24th.

[catsick] 29/4/2020 13:38

Looks like a transaction of some sort is brewing, maybe a farm sale or the whole company

[cjohn] 26/4/2020 15:41

Yes, that is good news. They need to sell-off more non-core assets.

[pre] 24/4/2020 12:44

Tick up - great news for ZAM

[pre] 24/4/2020 12:36

rns - sale completed received $10 million, current mkt cap only £10.8m !!

[cjohn] 10/1/2020 17:40

Hello pre and Value Viper. There are about 300m ordinary shares in issue. There are also about 100m preference shares in issue. These preference shares were sold to CDC, the UK development finance institution, in July 2016, for a total consideration of $55.5m. They accrue 12% annual compound interest should Zambeef CHOOSE to redeem the shares. Meanwhile, they receive the same dividend as the ordinary shares - currently, zero. They are convertible by CDC into ordinary shares at a rate of 1 to 1 until July 2024. Thereafter they are convertible at a rate of just over 3 to 1, 3 ordinaries for every preference share. So let's say, Zambeef choose not to or can't raise the cash to redeem the shares before the 2024 cut-off date. At that point, CDC will convert the shares which will give them 50% of the company. CDC are already a major shareholder here. They hold about 17% of the company (arranged simultaneously with the preference shares in July 2016.) So post-July 2024, CDC will hold 58.5% + of the expanded ordinary share capital, if the preference shares aren't redeemed. Some time ago, Zam expressed the intention of prioritising redeeming the preference shares. This has not happened. To redeem the shares currently, they'd need to raise around $82.5m! My belief is that they are highly unlikely to raise this money. (Nor would it be a sensible use of cash, unless they can take on a new loan at very favourable interest rates.) So it's likely that CDC convert in summer 2024. This will double the number of ordinary shares (and eliminate the preference shares.) and so half the share of all other shareholders. It could also serve as a catalyst for outing value…. So irrespective of the preference shares, I believe the current share price is too low. I have a very small position here - a few thousand pounds. But I think the risk/ reward profile is attractive.

[pre] 06/12/2019 18:58

farm sale for $10m, current mkt cap circ. £14m, 77% rise in eps and significant growth and most recent director buys at 10.5p, agree mkt cap way too low. Think many missed rns and probably will have missed the after mkt close egm rns too. Monday should be interesting:-)

[value viper] 06/12/2019 18:41

It's odd price didn't really move todayMaybe despite what they have said, the dire FX situ lessens the net effect to the co or something ?The farm sale whilst good news for realising cash was already in the public domain .... even if it's positive that it will be official soon.At face value, I think market cap way too low but are we missing something here ?I aware of boat loads of pref shares out there ?Asset value of all their farms should be material for starters I think.

[pre] 06/12/2019 18:33

well nice surprise rns after the bell...EGM to sanction £10m farm sale due early in new year....don't forget directors paid alot more (10.5p in feb 19) and eps is a whopping 73% higher and achieved significant grwoth...pretty certain this one has been missed off the radar.

[value viper] 06/12/2019 18:26

Sorry what ??This is Zambeef thread.

[pre] 06/12/2019 13:19

Zambeef achieved significant growth...not even priced in!

[pre] 06/12/2019 13:17

rns out...anyone seen this, blimey that's excellent performance: '.. Earnings per Share for the financial year ended 30th September 2019 is expected to be approximately 73% higher (in Kwacha terms) than the corresponding period last year for the Group...'

[value viper] 05/12/2019 14:09

Decent bid for the stock currentlyCan't buy any

[value viper] 21/11/2019 21:33

hopefully nothing to worry about by delaying the results a smidgen i have just counted 9 NEDS at the company ?? any thoughts cat ?

[value viper] 12/11/2019 10:28

Results due on 22nd

[value viper] 15/10/2019 13:45

Think they could use a bit of company promotion

[catsick] 02/10/2019 13:55

Yes very nice

[value viper] 02/10/2019 13:28

Nice updateChart turning

[catsick] 18/9/2019 09:10

Maybe it does go to 1p but the assets of the company are worth a lot, its the largest company in the country and the currency is not of a major concern if the farms can be sold for usd as can the produce, if you are going look at emerging markets its a risk you have to deal with

[fmscw] 18/9/2019 08:55

the "Redemption Price" definition under the DEFINITIONS section at the end of your document. Obviously the doc is written in such a way to make it difficult to understand!

[catsick] 18/9/2019 08:34

Im probably an idiot but I am buying more down here, at 5p these are crazy cheap given the underlying assets, the farms are now validated as probably worth 100m usd and then they have 200+ shops and a host of other businesses, at some point they will put 2 solid years together and we will be at 50p+ I can wait ....

[profit7] 17/9/2019 19:03

Should rise on every trade tomorrow, since sellers out

[profit7] 17/9/2019 18:50

Sellers out!!! Large print after hours