[2008-06-20]  Zambeef to buy Nanga Farms
ZAMBEEF Products has successfully negotiated to acquire all shares in Nanga Farms Plc for over K84.8 billion.

The total shares in the business equates to 41,753,671 ordinary shares in Nanga, constituting 85.7 per cent of the total authorised and issued share in Nanga Farms with purchase price agreed at K84, 872,697,900 million.

However, the transaction is subject to authorisation by the Zambia Competition Competition.

“Subject to shareholder approval, the consideration for the acquisition of 85.73 per cent of Nanga Farms Plc will be in form of new ordinary shares in Zambeef products Plc,” it reads.

According to a Zambeef acquisition announcement, the company will acquire a majority stake in Nanga Farms and the business would be integrated into the existing operations of Zambeef Group of Companies.

Zambeef anticipates that the purchase of Nanga Farms will add significantly value to the company’s cropping season.

The statement said the Commonwealth Development Corporation (CDC) Group Plc, one of the vendors, which owns the 85.73 per cent of the business, had agreed to fully dispose off its shares in Nanga Farms.

The other shareholder is Government, which holds 14.27 per cent of the company. However, it will not sell its holding in Nanga Farms presently.

The number of number of shares to be issued is 12,300,391 million new Zambeef ordinary shares valued at an agreed K6,900 in line with Zambeef closing share price on May 30, 2008.

On the benefits, the purchase of Nanga Farms is expected to expand Zambeef’s product lines adding that this diversification will further enhance the company’s quality of earnings and reduce earning volatility.

“The acquisition is aligned with Zambeef Products Plc core business that is production, processing, distribution and retailing the Zambian food basket to all segments of the population,” it adds.

Controversy had erupted last year over the earlier proposed sale of the CDC shares when some workers allegedly refused the transaction in which some senior director allegedly used company funds to buy the CDC shares prompting Parliament to Intervene.

This followed revelation in the Auditor General’s report of irregularities in the sale of the firm.

Parliament last year was quoted in the media, as having strongly reprimanded Nanga Farms board chairperson, Chad Kaunda for dismissing the Auditor General’s report as misleading and disparaging document.

In a long-grilling session by the Parliamentary Public Accounts Committee, Mr Kaunda was carpeted for not taking active interest in the happenings at the Farm.

He had persistently attacked the report, accused it of having ignored facts, and presented “a totally misleading position” on the transfer of CDC shares to an offshore entity, New World Farming.

The transaction was eventually cancelled.



Source: © 2005 Zambia Daily Mail.