Zambeef warns shareholders over investor's preference shares

(Sharecast News) - Zambeef Products issued a further cautionary announcement on Tuesday, warning shareholders that the potential conversion of preference shares held by British International Investment could have a material impact on the company's share price. The AIM-traded Zambia-based agribusiness said British International Investment, formerly CDC Group, acquired 52.6 million ordinary shares and 100,057,658 convertible redeemable preference shares in Zambeef in 2016 under an investment agreement disclosed at the time.

It noted that 16 September 2024 marked the eighth anniversary of that investment.

After that date, BII's conversion rights on the preference shares increased from a one-for-one conversion into new ordinary shares to a ratio of one preference share into 3.0833 recurring ordinary shares.

Zambeef said that any conversion of the preference shares could thus have a material effect on the price of its securities.

In line with the Lusaka Securities Exchange's listing requirements, the company advised shareholders to continue exercising caution when dealing in Zambeef shares.

At 1106 GMT, shares in Zambeef Products were down 2.08% at 4.7p.

Reporting by Josh White for Sharecast.com.