We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now


It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Registration Strip Icon for default Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.

ZAM Zambeef Products Plc

0.00 (0.0%)
01 Dec 2023 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Zambeef Products Plc LSE:ZAM London Ordinary Share ZM0000000201 ORD ZMW0.01
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 6.25 0.00 08:00:17
Bid Price Offer Price High Price Low Price Open Price
6.00 6.50 6.25 6.25 6.25
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Poultry & Poultry Prods-whsl ZMW 5.5B ZMW 29.15M ZMW 0.0970 0.64 18.79M
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 6.25 GBX

Zambeef Products (ZAM) Latest News

Zambeef Products (ZAM) Discussions and Chat

Zambeef Products Forums and Chat

Date Time Title Posts
02/5/202301:10Zambeef 2016 : a tasty bullish play ?215
24/3/201612:32ZAMBEEF ::: 1 of 13 for 2013 says Panmure Gordon552
08/1/201313:38ZAMBEEF ::::::::::::::::: A steak in developing Africa220

Add a New Thread

Zambeef Products (ZAM) Most Recent Trades

No Trades
Trade Time Trade Price Trade Size Trade Value Trade Type

Zambeef Products (ZAM) Top Chat Posts

Top Posts
Posted at 03/12/2023 08:20 by Zambeef Products Daily Update
Zambeef Products Plc is listed in the Poultry & Poultry Prods-whsl sector of the London Stock Exchange with ticker ZAM. The last closing price for Zambeef Products was 6.25p.
Zambeef Products currently has 300,579,630 shares in issue. The market capitalisation of Zambeef Products is £18,786,227.
Zambeef Products has a price to earnings ratio (PE ratio) of 0.64.
This morning ZAM shares opened at 6.25p
Posted at 23/3/2022 09:15 by gb904150
Thanks for that clarification cs.

That is a bullish development. The concern here for me has always been the preference shares, what will happen with them and whether shareholders will be left with much when the issue is dealt with.

The prefs 'debt' is in USD and the ZMW is always inflating vs the USD. It's around $110m in 2022. The repayment date is 2024 and ZAM have no way of paying that.

I think it comes down to how responsible CDC want to be with the company.

CDC can convert at 3:1 into shares but that would screw over other shareholders. They can do it, but it's not a good look.

Any idea what might happen with that?

Prior to this Rudlands stake I don't see the rush here.

But now the Rudlands family are buying up....they must be aware of some developments that suggests the equity is attractive.
Posted at 22/3/2022 14:53 by tomboyb

Has taken a 7.2% stake in ZAM -

RNS out -
Posted at 03/12/2021 20:36 by gb904150
If you owe the bank £1m you have a problem.
If you owe the bank £1bn it is the bank who has the problem.

Your calcs on the pref shares are very accurate! $97.8m at the anniversary this year.

Completion 16/09/2016. 100,057,658 shares @ subscription price $0.555 = $55.532

$0.555 / $55.5m in 2016
$0.6216 / $62.16m in 2017 – 12%
$0.6962 / $69.62m in 2018 – 12%
$0.7797 / $78.02m in 2019 – 12%.

Ideal time to pay off. Min price was always $0.77

$0.873 / $87m in 2020
$0.978 / $97.8m in 2021
Posted at 03/12/2021 16:04 by gb904150
Are you suggesting that ZAM will never buy them back?

The issue is that there is a penalty after the 8th anniversary, which is in 2024:

- Holder can convert to ordinary shares at any time on 30 days notice
- Before 8th anniversary – 1:1 conversion to ord shares
- After 8th anniversary 1:3 conversion to ord shares

The pref shares are barely mentioned in reports, but in 2018 annual report the company strategy was clear:

the redemption of the preference shares held by CDC is a significant consideration, as although they rank as equity, the redemption value of the shares escalates at an annual compounded rate of 12%, which is significantly higher than the average cost of the Group’s US Dollar debt, which is approximately 7%. The Board is therefore considering, as a priority, various strategic options that would enable the preference shares to be redeemed.

What do you think the strategy is to deal with the pref shares? A renegotiation of some sort with CDC?
Posted at 03/12/2021 12:21 by 34adsaddsa
Things aren't so swell for CDC. What good is a 12% compounding "interest" if the resulting number is so large that Zambeef will never redeem the preference shares?

They won't get redeemed because they don't have the money to do so and even if they did it wouldn't make sense at this valuation.

CDC could keep the preference shares as they are, receiving no interest payments at all but having the option to convert into about 1/2 of the company at a time of their choosing. But do they really want to own an additional 1/2 of this company? What's the exit plan there? At the current share price, it would also mean a big paper loss. They invested about $55M into those preference shares but would only get back ordinary shares worth about $30M.

The other option is to reach an agreement to convert the shares into debt. Zambeef's current debt load should be much lower by then. Perhaps I'm wrong but I think they would be much more interested in that option.
Posted at 26/8/2021 08:52 by catsick
Interesting to see these elections in Zambia are a landslide for the new President who seems to be a decent guy, Has led to a huge surge in the Kwatcha which has appreciated over 25% and removed all last 12 months losses and some extra... This could be the first time in years that fx gives a big boost to the accounts, should be very good indeed for the company as is the high copper price which should make the macro situation in the country very helpful in rescheduling all the countries debts ....
Posted at 20/6/2021 08:44 by gb904150
I think it's a tiny and illiquid company and takes very little buying to move it. A lot of PI's don't know about the pref shares and the half-year report sounded positive. Perhaps that was enough to move the SP? Was there much volume?

They were tipped in Moneyweek a few weeks ago where it was highlighted how 'cheap' they were on a P/E basis - again no mention of the preference shares.

ZAM doesn't generate anywhere near enough cash to pay off the pref shares before the 8th anniversary (2024). At that point they can convert at 1:3 into equity rather than 1:1. The optics of that would be very poor for CDC so I doubt they would be quite so ruthless. More likely is some kind of debt refinance but in which case ZAM are entirely at the mercy of CDC as to how generous they want to be.

Too much uncertainty for me but perhaps a nice gamble for others.

I've always liked the 'feed Africa' ZAM story but unfortunately that doesn't mean they are a good investment! This one has never shown much prospect of being run in the interests of investors.
Posted at 19/6/2021 09:17 by gb904150
hi dave4545,

Be careful with this one. A lot of people don't know about the preference shares that were issued in 2016 and compound at 12% pa. There is still no resolution on that.

My calculations make that to be a 'debt' of $97.8m in 2021 but what it really comes down to is whether CDC find a reasonable compromise rather than fully redeeming them and leaving equity holders with (almost) nothing.

My notes on that were:

Completion 16/09/2016. 100,057,658 shares @ subscription price $0.555 = $55.532

$0.555 / $55.5m in 2016
$0.6216 / $62.16m in 2017 – 12%
$0.6962 / $69.62m in 2018 – 12%
$0.7797 / $78.02m in 2019 – 12%. Sept 2019.

2019 was best time to pay off. Min price was always $0.77 hence penalty to pay off sooner.

$0.873 / $87m in 2020
$0.978 / $97.8m in 2021

Next important is obviously the Zambian Kwacha vs USD rates and finally local Zambian crop and meat prices. Those often do well when copper does well as the country as a whole is richer as a result.

Regarding converting the pref shares I had these notes, I think from an old annual report.

o Before 8th anniversary – 1:1 conversion to ord shares
o After 8th anniversary 1:3 conversion to ord shares
Posted at 18/6/2021 21:53 by dave4545
Some interesting trades in this one today.

Big uncrossing trades and a stack of big trades all at 8.5p full offer

And the share is breaking out to highs not seen for a few years.

Anybody here, no posts in 2021
Posted at 24/3/2016 12:32 by grollfam
Rcl Foods Limited - Announcement Of The Exercise Of The Put Options Granted To Rcl Foods Limited By Zambeef Products Plc

Release Date: 24/03/2016 12:18:00 Code(s): RCL Announcement of the exercise of the put options granted to RCL Foods Limited by Zambeef Products plc

(Incorporated in the Republic of South Africa)
(Registration number: 1966/004972/06)
ISIN: ZAE000179438
Share Code: RCL


1. Background

During 2013, RCL Foods Limited (“RCL FOODS”), through its wholly owned subsidiary, Rainbow
Farms Investments Proprietary Limited, entered into agreements with Zambeef Products PLC
(“Zambeef̶1;) regarding investments in its broiler business, Zam Chick Limited (“Zam Chick”), and
a greenfield hatchery investment, Zamhatch Limited (“ZamhatchR21;).

RCL FOODS has a 49% interest in Zam Chick and a 51% interest in Zamhatch. Shareholders’
agreements were entered into between RCL FOODS and Zambeef in respect of Zam Chick on
1 February 2013 (“the Zam Chick Shareholders’ Agreement”) and Zamhatch on 29 May 2013
(“the Zamhatch Shareholders’ Agreement”) (collectively, “the Shareholders’ Agreements”).

In terms of the Shareholders’ Agreements RCL FOODS, as a standard protection mechanism,
was granted put options that would require Zambeef to acquire all of the ordinary shares held by
RCL FOODS in Zam Chick (“the Zam Chick Option”) and Zamhatch (“the Zamhatch Option”)
(collectively, “the Options”).

If the Zam Chick Option is exercised at any time, the value attributable to RCL FOODS’ interest
in Zam Chick (49%) will be determined as the higher of the following amounts on the date that
the Zam Chick Option is exercised:

- 49% of the consolidated earnings before interest, taxation, depreciation and amortisation
(“EBITDA”;) of Zam Chick at an exit enterprise value (“EV”) / EBITDA multiple of 7.5 times; or
- the original purchase price paid by RCL FOODS to Zambeef for the Zam Chick shares,
expressed in US Dollars (“USD”).

Currently, RCL Foods has no shareholder loan account claims against Zam Chick.
If the Zamhatch Option is exercised within 3 years of the effective date (31 March 2013), the
value attributable to RCL FOODS’ interest in Zamhatch (51%) will be determined as the higher of
the following amounts on the date that the Zamhatch Option is exercised:

- 51% of the consolidated EBITDA of Zamhatch at an exit EV / EBITDA multiple of 7.5 times;
- the invested USD amounts outstanding to RCL FOODS on capital and loan account.

Should the Options be exercised, the purchase consideration in respect of the Zam Chick shares
and the Zamhatch shares purchased by Zambeef, shall, at Zambeef’s discretion, be payable as

- in cash; or
- by the transfer by Zambeef to RCL FOODS of Zambeef shares; or
- by the issue and allotment by Zambeef to RCL FOODS of newly issued Zambeef shares; or
- by a combination of Zambeef shares and cash.

The value attributed to the Zambeef shares for purposes of settling the purchase consideration or
part thereof in Zambeef shares, will be determined by the Volume Weighted Average Price
(“VWAP”) of Zambeef shares as quoted on the AIM Stock Exchange for 30 business days
immediately preceding the settlement date. The settlement date shall not be later than six
months from the date that the Options are exercised. Zambeef’s market capitalisation as at 23
March 2016 is USD31.9 million (based on an exchange rate of GBP1.00: USD1.4091).

In terms of each of the Shareholders’ Agreements, and in respect of each Option, to the extent
that Zambeef is unable to effect the total payment for the Option shares in cash, then it shall
effect payment by issuing Zambeef shares to RCL FOODS. For this purpose, Zambeef
warranted that it would hold available up to 10% of its issued ordinary share capital (in respect of
each Option).

In accordance with Zambian laws and regulations, certain scenarios relating to the acquisition of
the shares by Zambeef may require shareholder approval. In addition, the approval of the
Competition and Consumer Protection Commission, the Lusaka Stock Exchange and the
Securities and Exchange Commission (“SEC”) will be required in order for Zambeef to implement
the acquisition of all of the ordinary shares held by RCL FOODS in Zam Chick and Zamhatch in
accordance with the terms of the Options.

2. Exercise of the Options

Exercise notices in respect of Zam Chick and Zamhatch were delivered to Zambeef on 23
March 2016, informing Zambeef that the Options have been exercised. This action fixes the
Option exercise date and commences the six-month period for purposes of determining the
settlement date, in accordance with the terms of the Shareholders’ Agreements.

The purchase price owing by Zambeef to RCL FOODS in terms of the Options is as follows:

- in respect of Zam Chick – USD 14,250,000.00; and
- in respect of Zamhatch – USD 4,000,000.00 capital plus USD 6,159,174.53 of shareholder
(collectively, “the Settlement Consideration”).

3. Dispute

There is a dispute between RCL FOODS and Zambeef with regard to the computation of the
purchase price to be paid for the Zamhatch shares by Zambeef. Zambeef contends that the
portion of the purchase price payable by it for the capital contribution by RCL FOODS to
Zamhatch should comprise the Zambian Kwacha value of the capital contribution at the time that
it was originally paid (in USD) by RCL FOODS. This amounts to ZMW 24,800,000.00. RCL
FOODS contends that the amount payable to it ought to be the USD amount originally paid,
being USD 4,000,000.00. On the Zambeef version, this results in a reduction in the amount
payable to RCL FOODS of approximately USD 1,807,250.22 (based on an exchange rate of
USD 1.00: ZMW 11.31 as at 23 March 2016).

In addition, Zambeef argues that a portion of the RCL FOODS loan account in Zamhatch was
paid in Euros, and ought to be denominated in Euros as opposed to USD. The Euro amount paid
by RCL FOODS was Euro 3,301,849.53. Again, RCL FOODS is of the view that this amount
should also be denominated in USD as at the date of payment, being USD 4,159,174.53. On the
Zambeef version, this results in a reduction in the amount payable to RCL FOODS of
approximately USD 466,656.60 (based on an exchange rate of USD1.00: Euro 0.8942 as at 23
March 2016).

If the matter is not resolved, RCL FOODS will pursue its contractual remedies in terms of the
Shareholders’ Agreements.

4. Rationale for the exercise of the Options

RCL FOODS is of the opinion that its interests in Zambeef (indirectly held through Zam Chick
and Zamhatch) would be better aligned with the shareholders of Zambeef if RCL FOODS’
indirect investments were to be exchanged for a direct interest in Zambeef, the listed holding
company of the Zambeef group of companies. Hence, the RCL FOODS board of directors (“the
Board”) took the decision that the Options should be exercised.

Zambeef has indicated that the exchange mechanism provided for in the terms of the Options
may be considered by some Zambeef shareholders as unduly dilutive for such shareholders. As
a result, the Board proposed that, subject to certain considerations, the existing Zambeef
shareholders should be given the opportunity of reducing the potential dilution to which they
would be exposed if some, or all, of the Settlement Consideration is settled by way of new
Zambeef shares. In order to counter any potential dilution, existing Zambeef shareholders will be
given the opportunity to buy back a portion of the new Zambeef shares issued to RCL FOODS,
by way of a claw-back offer. In terms of the claw-back offer, existing Zambeef shareholders will,
in proportion to their respective shareholdings in Zambeef, be able to buy back some of the
Zambeef shares received by RCL FOODS. Should the Settlement Consideration result in RCL
FOODS holdingmore than 25.1% in Zambeef, it will make available for the claw-back offer, RCL
FOODS’ interest above 25.1%. The shares made available by RCL FOODS for purposes of the
claw-back offer will be offered to Zambeef shareholders at the same price that such shares have
been issued to RCL FOODS, except for any potential costs and taxes associated witrh the claw-
back offer, which will be for the account of participating Zambeef shareholders.

From an administrative and regulatory point of view, RCL FOODS will issue a circular to all
Zambeef shareholders, detailing the termsof the claw-back offer. RCL FOODS will liaise with the
management of Zambeef and the SEC in Zambia in this regard. RCL FOODS will also seek a
dispensation from the SEC to ensure that, in the event that the Settlement Consideration results
in RCL FOODS is holding more than 35% of Zambeef, it will be granted the opportunity to sell
down sufficient shares so as not to trigger a mandatory offer to the Zambeef shareholders.

5. General

RCL FOODS is aware that Zambeef management has been mandated by its board of directors
to actively work towards reducing Zambeef’s current debt position. Over the past few months
RCL FOODS has been in discussions with Zambeef management in respect of possible
mechanisms to inject capital into Zambeef. The Board is of the view that should RCL FOODS
become a shareholder in Zambeef, RCL FOODS would like to continue with these discussions.
RCL FOODS is of the opinion that Zambeef is an attractive business that, pursuant to an
injection of new capital, could materially improve its overall performance. RCL FOODS thus
remains interested in considering opportunities that could lead to a more substantial transaction
between RCL FOODS and Zambeef.

The transaction referred to above is not subject to JSE Limited (“JSE”) Listings Requirements due to
its size being below the JSE category thresholds, and is only subject to a number of non-material
conditions precedent. Shareholders are advised that Zambeef is also today publishing an
announcement simultaneously on the AIM and Lusaka Stock Exchanges.

24 March 2016

RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Zambeef Products share price data is direct from the London Stock Exchange

Your Recent History

Delayed Upgrade Clock

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

Support: +44 (0) 203 8794 460 |