ZAMBEEF Products has applied to Competition and Consumers Protection Commission (CCPC) to acquire 100 percent shares in both Zam Chick andZamhatch to gain full control of the firms.
To this effect, Zambeef Products Plc, Zamhatch Limited, Zam Chick Limited, Rainbow Farm Investments Proprietary Limited (RFI) and CDC Group plc have applied to CCPC on their intended merger for purpose of approval.
The five companies have also written to the Common Market for Eastern and Southern Africa (COMESA) Competition Commission (CCC) regarding the proposed merger, according to the letter submitted to CCPC and availed to the Daily Mail on Tuesday.
In its submission, the parties state that the proposed transaction concerns the respective acquisition of RFI’s 49 percent and 51 percent shareholding in Zam Chick and Zamhatch by Zambeef Products under put options (an option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time) by RFI.
“CCC has received a notification regarding the proposed merger involving Zambeef Products Plc, RFI, Zam Chick Limited, Zamhatch and CDC Group. The parties submitted that Zambia is among the member states that are likely to be affected by the transaction.
“Following the exercise of the put options, Zambeef will become 100 percent shareholder in both Zam Chick and Zamhatch .The parties have submitted that in connection with the settlement of the put options, Zambeef Products and CDC have entered into an investment agreement whereby CDC will subscribe for 52,601,345 new ordinary shares in Zambeef and subscribe for 100,057,658 new convertible redeemable preference shares,” the letter reads.
CCPC has been requested by CCC to obtain representations from interested parties and shakeholders on the views of the transaction.
“The commission’s concern is primarily whether the proposed transaction between the parties would have effect or lessen competition in Zambia,” the letter reads.
CDC is a United Kingdom development finance institution incorporated in that country and wholly-owned by the UK government while RFI is a private company incorporated in South Africa and wholly-owned subsidiary of RCL Foods Limited. Source: Daily Mail