Zambeef has announced the disposal of Sinazongwe Farm for US$10m gross (US$9.25m net). While the sale process has taken quite some time, at US$3,900/ha for the 2,500ha farm we see this as a good price, particularly as the impact on the income statement is small. The cash raised will be used to pay back debt and represents 2.5p/share. Our earnings forecasts are not materially affected but the cash is a welcome injection to the balance sheet.
17 Sep 2019
Zambeef - Disposal of farm yields US$9.25m cash
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Zambeef - Disposal of farm yields US$9.25m cash
Zambeef Products PLC (ZAM:LON) | 5.8 0 0.0% | Mkt Cap: 23.0m
- Published:
17 Sep 2019 -
Author:
Michael Clifton | Cavendish Research -
Pages:
3
Zambeef has announced the disposal of Sinazongwe Farm for US$10m gross (US$9.25m net). While the sale process has taken quite some time, at US$3,900/ha for the 2,500ha farm we see this as a good price, particularly as the impact on the income statement is small. The cash raised will be used to pay back debt and represents 2.5p/share. Our earnings forecasts are not materially affected but the cash is a welcome injection to the balance sheet.