Zambeef Products Share Discussion Threads

[multibagger] 29/6/2013 18:55

ZAM tipped in Shares...may see some short term interest.

[multibagger] 17/6/2013 06:34

Thanks for posting the link, tenapen !

[tenapen] 16/6/2013 11:32

MIDAS SHARE TIPS: Shares soar at Zambian beef producer we tipped

By Joanne Hart, Financial Mail On Sunday

PUBLISHED: 22:34, 15 June 2013 | UPDATED: 22:34, 15 June 2013


Cont...

[multibagger] 12/6/2013 06:34

....and just may be a Chinese/Middle eastern company may want to do a deal like "Smithfields"....food security is increasingly an issue in so many parts of the world due to water scarcity issues coupled with an increasing population.

[cyfran101] 11/6/2013 23:16

I agree Multibagger. Being so vertically integrated is not just great for control over costs but also the quality.

The horse meat saga showed how disconnected our supermarkets are from their sources with so many middlemen.

By having such control they can truly establish a quality brand that can be trusted in the countries they operate in. With costs kept in check as much as they can and an ability to charge higher prices under a brand those profit margins are maximised.

[multibagger] 11/6/2013 20:58

Thanks Tenapen :)

[tenapen] 11/6/2013 17:33

Zambeef's Web-site now as a CNBC Africa Live Phone Interview – 2013 on the home page.

[multibagger] 11/6/2013 06:57

I agree that the results are good. I am really pleased about how ZAM are vertically integrating in every sector and thereby developing greater control of their profit margins.I intend this to be a medium to long term holding for me as it is a great company, good management, in the right sector (agribusiness) in a rapidly developing part of the world. Dividends will be a bonus, as share price appreciation is going to happen due to the paucity of similar companies for funds to invest in. Good luck all :)

O/T - my other play in this sector is Obtala Resources (OBT) which appears to be significantly undervalued given the commercial potential of its irrigated land which is being rapidly developed and growing tomatoes,peanuts,chillies and palm oil etc, high value massive forestry concessions and significant stake in Paragon Diamonds (PRG).

[cyfran101] 11/6/2013 01:27

I felt they were solid results.

True inflation is an issue and the way the chicken deficit was closed so rapidly confirms the low barriers to entry of that division.

But majority of divisions put in great figures and they are well balanced across the group. Particularly encouraged by the Shoprite expansions across West Africa and the explosion of stock feed exports.

You could be disappointed in a dividend being further away however this is a growth stock and should be seen as positive.

[multibagger] 10/6/2013 21:55

The directors held the following interests in the Company's ordinary shares at the balance sheet date:


31 March 2013 30 September 2012
Direct Indirect Direct Indirect
Jacob Mwanza (Dr) 1,100,000 - 1,100,000 -
Carl Irwin 3,763 4,322,682 3,763 4,322,682
Francis Grogan - 3,596,631 - 3,596,631
John Rabb - 7,868,813 - 7,868,813
Lawrence S. Sikutwa - 115,176 - 115,176
Irene M. Muyenga 13,129 - 13,129 -
Adam Fleming - 13,710,355 - 13,710,355
Yusuf Koya 42,762 - 42,762 -
Sushmit N. Maitra - - - -
1,159,654 29,613,657 1,159,654 29,613,657
========== =========== ========== ===========

10. Significant Shareholdings

As at 31 March 2013, the Company has been advised of the following notifiable interests in its ordinary share capital:


Investor Name Current Position % of Shareholding
-------------------------------- ----------------- ------------------
M&G Investments 44,113,908 17.73%
-------------------------------- ----------------- ------------------
SG-SSB Limited 24,631,080 9.90%
-------------------------------- ----------------- ------------------
SQM Frontier Management 19,764,333 7.94%
-------------------------------- ----------------- ------------------
Emerging Markets Management 16,754,551 6.73%
-------------------------------- ----------------- ------------------
Rhodora Limited 10,699,762 4.30%
-------------------------------- ----------------- ------------------
Artio Global Management 9,363,990 3.76%
-------------------------------- ----------------- ------------------
Franklin Templeton Investments
(UK) 9,009,471 3.62%
-------------------------------- ----------------- ------------------
Red Fort Partnership Limited 8,400,000 3.38%
-------------------------------- ----------------- ------------------
National Pension Scheme
Authority (Zambia) 8,282,171 3.33%
-------------------------------- ----------------- ------------------
Shaka Holdings Inc. 7,868,813 3.16%
-------------------------------- ----------------- ------------------

If my addition is correct, then

189,661,390 out of 247,978,195 shares or approx 76.48% is held by Directors or Institutions/Funds. The low free float augurs well for the share price,if any other big investor wants in.

[tenapen] 10/6/2013 20:54

Mmmm ! I had hoped for more if truth be told. Possible dividend news in 2014 but that could be in the final results in December 2014 = 18 months away. Hae Ho, i will continue to hold and add a few more over the coming months.


hxxp://www.agrimoney.com/news/zambeef-upbeat-despite-wage-hike-dent-to-profits--5923.html

Zambeef upbeat despite wage-hike dent to profits

Zambeef flagged its potential as a regional force in agribusiness, exploiting trends including signs of revival in Zimbabwe's agriculture sector, even as it unveiled a decline in profits, and dashed residual hopes of a return to dividends before 2014.

Cont...

[cyfran101] 10/6/2013 00:32

Thanks for pointing out the Economist article Tenapen.

Looks like the interims will be an interesting read!

[cestnous] 09/6/2013 11:47

Thnx tenapen. Good article.

[tenapen] 07/6/2013 15:37

With the Interims due on Monday its good to see some buying today. But maybe its the write up in the Economist magazine that as attracted the interest
?. Which ever reason it is, I expect some good results and it would be nice to have some news on the re-instated Dividend :).



A rare meat success in Africa
A fast-growing food firm is looking beyond its home country for customers
Jun 8th 2013 | LUSAKA

Cont...

[multibagger] 30/5/2013 07:07

TIDMZAM

RNS Number : 8331F

Zambeef Products PLC

30 May 2013


For immediate release 30 May 2013


Zambeef Products Plc

("Zambeef" or the "Group")

Establishment of Hatchery Joint Operations

Zambeef (AIM:ZAM), the fully integrated agri-business with operations in Zambia, Nigeria and Ghana, is pleased to announce that on 29 May 2013 the Group entered into a joint venture operations agreement (the "JV Agreement") and a shareholders' agreement (the "Shareholders' Agreement") (together, the "Agreements") with Rainbow Farms Investments Proprietary Limited ("Rainbow Farms") to establish a broiler parent stock rearing, laying and hatching operation for the supply of day old chicks, Zamhatch Limited ("Zamhatch" or the "Company") (the "Transaction").

Background to, and reasons for, the Transaction

The establishment of Zamhatch is in line with the Group's strategically integrated business model, aimed at reducing risk and earnings volatility and capturing margin throughout the value chain, with a focus on supplying higher margin products. The Board considers that managing the quality and quantity of supply of day old chicks to its broiler division will enable the Group to maximise operational performance as well as create opportunities to generate revenue from the sale of day-old chicks to third parties.

The Zamhatch business will be developed at Mpongwe Farms and will also include an on-site feed mill to reduce transport costs that would otherwise be incurred in delivering feed from Zambeef's Lusaka-based operations.

Following completion of the Transaction, the Board expects Zamhatch to become operational over the next two to three years.

The Joint Venture Operations Agreement

The key terms included in the JV Agreement are set out below:

-- The ownership of Zamhatch will be 51 per cent. Rainbow Farms and 49 per cent. Zambeef;

-- Rainbow Farms will be responsible for supporting Zamhatch's local management in the following functions:

o Development of technical specifications and operating procedures;

o Facilities design and specifications;

o Veterinary and disease control and management; and

o Procuring future broiler parent stock for supply to Zamhatch.

-- Zambeef will be responsible for supporting Zamhatch's local management in the following functions:

o Legal matters and managing the impact of any changes to Zambian legislation on the Company's operations;

o Human resources, accounting and administration support; and

o Securing the supply of other resources for the operation of the Company.

The Shareholders' Agreement

The key terms included in the Shareholders' Agreement are set out below:

-- Each of Rainbow Farms and Zambeef is entitled to appoint two directors to the board of directors of Zamhatch;

-- Zamhatch will be funded through a combination of equity and loan capital pro rata to the initial shareholding, as well as third party sources, including bank loans or leases. Third party funding will not exceed 30 per cent. of Zamhatch's total funding requirements;

-- Following an initial two year period post-completion of the Transaction (or at any time, if Zambeef is in material breach of the Shareholders' Agreement or the JV Agreement) Rainbow Farms has the right to require that Zambeef purchase the whole of Rainbow Farm's shares in Zamhatch (the "Put Option");

-- If there is a change in control of Rainbow Farms, Zambeef has the right to require that Rainbow Farms sell the whole of Rainbow Farm's shares in Zamhatch to Zambeef (the "Call Option");

-- The purchase price for the Put Option or Call Option will be 51 per cent. of the consolidated EBITDA of Zamhatch (as at the date of the exercise of the option), multiplied by 7.5;

-- Alternatively, if the Put Option (or Call Option) is exercised within three years of the Effective Date, the purchase price will be the higher of: (a) 51 per cent. of the consolidated EBITDA of Zamhatch multiplied by 7.5 (as above); or (b) the amounts outstanding to Rainbow Farms on capital and loan account; and

-- The purchase price for the Put Option is payable in cash or in ordinary shares in the share capital of Zambeef. The purchase price for the Call Option is payable in cash only.

Any Put Option exercised by Rainbow Farms shall be subject to the condition precedent that within a period of 40 weeks from the first order placed by the Company for parent stock (and/or grandparent stock, if applicable) which follows deliver of the exercise notice, Rainbow Farms or the Company secures the right by the Company to be supplied with broiler parent stock (and/or broiler grandparent stock if the Company is utilising such stock) from such breeder, supplier or distributor reasonably acceptable to the Company, in volumes materially the same as that which the Company was receiving at the time of the delivery of the Exercise Notice.

There are no conditions precedent to completion of the Transaction.

Francis Grogan, Chief Executive of Zambeef, commented:

"We are delighted to be joining forces with Rainbow Farms for the development and operation of our hatchery. Zamhatch will ensure the consistency and quality of supply of day old chicks to our broiler division, in line with our integrated business model. We believe the Transaction will create one of the finest farm to fork poultry businesses in Africa."

For further information, please contact:

Zambeef Products plc Tel: [phone]

Francis Grogan, Chief Executive Officer

Yusuf Koya, Executive Director

Strand Hanson Limited Tel: [phone]

Angela Hallett

James Spinney

Panmure Gordon Tel: [phone]

Callum Stewart

Hannah Woodley

Buchanan Tel: [phone]

Mark Edwards

Sophie McNulty

www.buchanan.uk.com

Notes to Editors

Information on Zambeef

The Zambeef Group is one of the largest integrated agri-businesses in Zambia, involved in the primary production, processing, distribution and retailing of beef, chicken, pork, milk, eggs, dairy products, flour, bread, edible oils and stock feed, throughout Zambia, as well as Nigeria and Ghana. The Group is also one of the largest cereal row cropping operations in Zambia, with approximately 8,350 hectares of irrigated and approximately 8,650 hectares of rain-fed, arable, developed land available for planting each year.

The Group has approximately 5,000 employees.

Further information can be found on www.zambeefplc.com

This publication is in line with standard practice for London Stock Exchange AIM listed Companies.

Information on Rainbow Farms

Rainbow Chicken Limited ("Rainbow") is the holding company of two principal operating subsidiaries, being Rainbow Farms and Vector Logistics (Proprietary) Limited. These subsidiaries enable the group to operate as a vertically integrated chicken producer. Rainbow is incorporated in South Africa and was listed on the JSE Limited in 1989.

Rainbow is the pre-eminent processor and marketer of chicken in South Africa, producing 4.8 million birds per week. It is a fully integrated broiler producer that breeds and rears its own livestock, which it feeds from its own feed mills, processes, distributes and then markets as fresh, frozen, value-added and further-processed chicken.

In view of Rainbow's skills, experience and track record in adding significant value to the basic chicken product, Rainbow represents the ideal strategic partner for Zambeef as it seeks to move into the value add and processing market.

Rainbow operates in the local retail, wholesale and foodservice channels with four brands - Rainbow, Farmer Brown, Rainbow Simply Chicken and Rainbow FoodSolutions. It also produces a variety of dealer-own brands for a number of retailers and wholesalers.

Rainbow is a 70 per cent. subsidiary of Remgro Limited.

Further information can be found on www.rainbowchickens.co.za

This information is provided by RNS

The company news service from the London Stock Exchange

END

[tenapen] 17/5/2013 15:34

O/T Zambeef



From News 16 May 2013
Africa's food imports on the rise

By Adam Green

Agricultural imports are on the rise, as African economies struggle to meet growing demand


Cont...

To an optimist, import-dependence spells opportunity. Firstly, structural imbalances are often a symptom of fast growth. China's annual agricultural consumption needs have now overtaken production too. For companies and investors, this import profile signals strong domestic demand which could be met through investment in domestic agribusiness and food retail.

[multibagger] 08/5/2013 07:12

RNS Number : 1840E

Zambeef Products PLC

08 May 2013


For Immediate Release 8 May 2013


Zambeef Products Plc

("Zambeef" or the "Group")

Completion of Zam Chick Transaction

Further to the announcement of 4 February 2013, Zambeef (AIM:ZAM), the fully integrated agri-business with operations in Zambia, Nigeria and Ghana, is pleased to announce that all the conditions precedent to Completion of its proposed disposal of 49 per cent. of its shareholding in Zam Chick have now been met, which includes inter alia, receipt of approval for the Transaction from the Competition and Consumer Protection Commission of Zambia, and the parties have agreed the effective date of the Transaction to be 31 March 2013.

Capitalised terms in this announcement carry the same meaning as those ascribed to them in the announcement of 4 February 2013, unless the context requires otherwise.


END

[tenapen] 20/4/2013 19:10

Carl Irwin-Director, business & strategy, zambeef


Published on 11 Apr 2013

Zambia Investment Forum in London

[tenapen] 11/4/2013 14:57

D'ho - I googled FRX and it came back a US company, i did not look deeper for a UK stock. Good luck with it :)


Big volume and price rise today for ZAM on the Lusaka stock exchange.

:)

[danielmiller1] 10/4/2013 19:48

FRX AIM LISTED,

[tenapen] 10/4/2013 19:01

Good Luck with FRX, Daniel.

I can only trade UK shares on the account i have, and money is a prisoner just now anyway.

cheers.

[danielmiller1] 10/4/2013 17:09

10P After months of studying and seeking advice I bought into FRX, but as always I know nothing!