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LONDON (Alliance News) - Zambeef Products PLC Wednesday said it will consider buying shares on the open market after shareholders voted against giving it powers to issue and allot shares to implement a joint chief executive long term incentive plan.
Zambeef, which produces, processes, distributes and retails meat and dairy products, said it will "consider the best way to proceed" now that shareholders have voted.
The company said that might include "the repurchase of ordinary shares sufficient to satisfy allotments under the Joint CEO Incentive Plan", a power that was supported by shareholders.
The company's largest shareholder is the M&G Recovery Fund, which is managed by M&G Investments' Tom Dobell, with a 17.8% stake. M&G, which is part of Prudential PLC, is joined by several other major shareholders, including National Pension Scheme Authority (Zambia) and SG-SSB Emerging Markets Fund, each of which owns a 10% stake, followed by Investec Asset Management (PTY) Ltd with a 9.9% holding.
Zambeef's investors were voting on a broader set of resolutions at a meeting in Lusaka, Zambia. All other resolutions were approved, meaning that shareholders backed the sale of Zamanita Ltd, which produces edible oil and soybean meal, to Cargill Holdings BV for USD25.7 million.
The sale of Zamanita requires approval from competition authorities, which is expected "shortly" by Zambeef.
"The disposal will allow Zambeef to focus on growing its core business, which is the retailing of cold chain meat and dairy products, delivered through the group's extensive processing, distribution and retail network. The move will also unlock value by freeing capital and cash flow for investment elsewhere and to reduce gearing," Zambeef Chairman Jacob Mwanza said in a statement.
Zambeef shares were up 2.0% at 12.50 pence on Wednesday afternoon.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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