Related Party Transactions, Zambeef Products PLC, 2020-05-12

RNS Number : 6200M
Zambeef Products PLC
12 May 2020

Zambeef Products plc

(“Zambeef” or the “Group”)


Related Party Transactions


Zambeef (AIM: ZAM), the fully integrated food producer with operations in Zambia, Nigeria and Ghana, announces the following related party transactions involving Non-Executive Director, Mr. John Rabb, and the former Chief Executive Officer, Mr. Francis Grogan, over cattle purchases for the calendar year 2020.

Mr. John Rabb is one of a class of beneficiaries in Sussex Trust, an organisation that owns 100% shareholding in Wellspring Ltd (“Wellspring”) and Mr. Francis Grogan is a 50% shareholder in Chisamba Ranching and Cropping Ltd (“CRC”). The two companies will be contracted to supply cattle to the Company commencing in April 2020 (and ending December 2020), as they have done in previous years.

Based on 2019 supplied quantities, Wellspring is expected to supply approximately 1,343 cattle with an approximate value of K4,600,185 (c. US$260,000) and CRC is expected to supply 1,480 cattle with an approximate value of K7,830,617 (c. US$440,000).

Further information

Further details on the cattle supply agreements are set out below:

                                                           Wellspring                       CRC

Period of Contract                  April -December 2020            April -December 2020

Number of Cattle                                1,343                                          1,480

Type of cattle.                      Qty.    Price/kg live wt.                         Qty.      Price/kg live wt.                                                            

Culled Bulls                              25          K11.70                                     30           K11.10

Culled Cows                            504         K11.70                                     150         K11.10     

Steers/Heifers.                       814         K14.50                                   1,300        14.60      


Zambeef buys weaners (heifer and steers) culled cows and Bulls from these two suppliers and these are placed in the feedlot for about six months before being slaughtered. For the year 2019, CRC supplied 1,522 cattle and Wellspring supplied 1,056 cattle. Zambeef also buys cattle from other traditional and commercial farmers throughout the year. On average, the Company keeps about 8,000 cattle in the feedlot during the year.

Related Party Transactions

The cattle supply agreements with Wellspring and CRC fall to be treated as related party transactions pursuant to the AIM Rules for Companies (“AIM Rules”). The Directors of Zambeef, other than Mr John Rabb, having consulted with Strand Hanson Limited in its capacity as the Company’s Nominated Adviser for the purposes of the AIM Rules consider that the terms of these cattle supply agreements to be fair and reasonable insofar as shareholders are concerned.


Zambeef Products Plc

Walter Roodt, Chief Executive Officer

Faith Mukutu, Chief Financial Officer


Tel:  +260 (0) 211 369003

Strand Hanson Limited      

James Spinney

Ritchie Balmer

Rob Patrick


Tel: +44 (0) 20 7409 3494


Christopher Raggett


Tel: +44 (0) 20 7220 0500


Nick Dibden

Bethany Johannsen


Tel: +44 (0)20 7250 1446

Pangaea Securities

Wendy Tembo

Tel: +260 (0) 211 220 707


Notes to Editors


The Zambeef Group is one of the largest integrated cold chain food producers in Zambia, involved in the production, processing, distribution and retailing of beef, chicken, pork, milk, eggs, dairy products, fish, flour and stock feed. The Group also has large cereal row cropping operations (principally maize, soya beans and wheat), with approximately 7,971 hectares of row crops under irrigation, which are planted twice a year and a further 8,623 hectares of rain-fed/dry-land crops available for planting each year.


The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.





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