Zambeef (ZAM), our disastrous 2014 Tip of the Year, has announced the previously flagged sale of its soyabean and edible oils business Zamanita for $25.7m (£17m). The proceeds of the sale will be used to pay down some of the group's $118m net debt. The Zamanita business also had a significant working capital requirement so the overall impact of the sale on borrowings should be a reduction of about $50m.
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Reducing the dollar-denominated debt load is particularly significant for Zambeef as the mismatch between the weak Zambian kwacha and the strong US dollar has been a major problem for the business. The sale will also see Zambeef more focused on its 'core' meat and dairy business.
