LONDON (ShareCast) - (Sharecast News) - Zambeef Products has agreed to sell its Sinazongwe Farm in Zambia to Chenguang Biotech Agri-Dev Limited for $10mln in cash.
The company said on Tuesday that the sale is in line with its strategy of focusing on its core business and disposing of low-performing and/or non-core assets and reducing debt.

On signing the sale and purchase agreement, Chenguang Biotech will make a 10% deposit, while the remaining 90% will be paid on or around the completion date, which is expected to be on or before 15 March.

Zambeef said proceeds from the sale will be used to pay down the group's debt. Net proceeds after payment of various regulatory and other professional fees/costs are expected to be around $9.25m.

Chairman Jacob Mwanza said: "This Transaction is in line with and a continuation of the group's strategic vision, which will allow Zambeef to focus on growing its core business, which is the production and retailing of cold chain meat and dairy products and stockfeed, delivered through the group's extensive processing, distribution and retail network.

"Furthermore, the transaction will allow Zambeef to continue to reduce its overall gearing, and in so doing, reduce interest costs."

At 1550 BST, the shares were up 3% to 5.15p.

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