South African poultry group Rainbow Chicken has announced plans to buy a 49 percent stake in Zambeef’s ZamChick.
The firm says it will pay $14.25 million in cash for the stake.
ZamChick currently manages and operates Zambeef’s chicken broiler business, including the broiler houses, chicken abattoir and processing plant.
Zambeef is a major player in the Zambian agri-business market and has an established track record in operating in African markets with operations in Zambia, Ghana and Nigeria.
In a statement Rainbow Chicken called it an “exciting opportunity” to “take the poultry industry in Zambia to a new level”.
The transaction is subject to Competition and Consumer Protection Commission of Zambia approval and approval from South African Reserve Bank.
South African poultry Rainbow Chicken will buy a minority stake in ZamChick of Zambia as part of an African expansion plan
Zambeef and Rainbow are each entitled to appoint 2 directors to the ZamChick board of directors, with Zambeef continuing to manage the day to day operations of ZamChick and Rainbow providing technical assistance.
This deal should not be allowed in zed, ask namibia what happened there??
ZAMBEEF WHY NOT MAKE THIS DEAL WITH A ZAMBIAN OWNED COMPANY ESPECIALLY THAT YOU MADE YOUR MONEY USING THE POOR ZAMBIAN FARMERS IN WESTERN AND SOUTHERN PROVINCES. I MEAN THOSE CHEAP ANIMALS YOU WERE BUYING FROM THESE FARMERS MADE U WHAT YOU ARE NOW, DONT FORGET. YOU PEOPLE IN DIASPORA DON’T MISS SUCH OPPORTUNITIES. BRING YOUR DOLLARS AND INVEST IN SUCH COMPANIES. DONT JUST SEAT AND COMPLAIN ABOUT PF,UPND,MMD…..TIME IS CATCHING UP WITH YOU.
why can’t YOU tell us what happened?
Pufu are you also on the State House mix of mutototo and special pumpkin leaves? Zambeef want to expand and they dont want to be small time players! It is a good deal . Its only communists like you who are against it!
Why not just tell us than leave us in suspense. I still get rainbow chicken from Katima Mulilo in Namibia. The chicken is also tasty
Tell us kaili!!
the man above speaks about namibia and the deal with the same SA CHICK co, please do your research well zambeef,we are so proud of you.
1. Chickens, chickens and more chickens!!!!! with the ever-increasing fast foods in the country, I urge all Zambians to take physical exercise seriously. with these cheap second hand cars around, everybody is driving and busy accumulating fat in their bodies. please beware of the dangers of this lifestyle.
2. this investor should not be allowed to import chickens & potatoes from South Africa, there are a lot of people rearing chickens and potato farmers in Zambia. So no imports!!!
i like the first point you raised. its so varied and very few reliase this
Yes I agree on the first point too. Add to that, the Rainbow Chickens unlike the Zambian ones, are so artificial they increase the risk of obesity, diabetes and HBP. South Africa now has the largest number of obese women in Africa; one third of black women in SA are obese. This is because of their love of KFC Mcdonalds and other junk food outlets that use Rainbow chickens..and of course their lack of exercise.
You are spot on…especially in your first paragraph as the African Middle-class is growing rapidly with that growth…comes refined tastes for exotic foodstuff which leads to more spending.
The Global multi-nationals are highly aware of this and are slowly positioning themselves; the WalMarts, KFCs, McDonalds, Subways etc have already started moving in hence all these strategic acquisitions by these “supply” companies. The average SME is still sleeping or doesn’t have the capital to match as supplying the big boys is about consistence in quality and ability to maintain large supply orders.
Government should not allow this deal to go through, please. Why can’t Zambeef go and take a stake in Rainbow Chickens in South Africa instead of always providing a field day to South African companies in Zambia? Remember what happened to Zambia Railways? You mean there are no local Zambian enterprises that Zambeef can offload its chicken processing business, if it’s tired doing so, itself? Please, the government should not sanction this deal; it’s taking the country backwards!
I agree with your views 100% on taking the country backwards. there are Zambians with adequate financial resources to run this business, but the problem is that they do not want to invest their money in “risky” businesses (which the South African boers are always ready to do) as Zambians always prefer investing their money in ventures such as real estate.
Richard Mwale just shut up and take your business illiteracy with you back to Kazimule village!
This is a deal between two private entities in what is supposedly a free market economy. Government’s job is to regulate and ensure fair play, government owns no stake in Zambeef. Your backwardness is really worrying.
Why always foreign companies especially South African taking over Zambian companies. When will Zambian investors think big. Leave Zambeef, Trade Kings alone
Very good deal by ZAMBEEF! You now have the cash to grow your business! Dont listen to the communist trash of the children of ex UNIP Governors!
The things is that South Africans have a history of using Zambia as a market for South African products. Shoprite even used to bring tomatos from South Africa. This kills the local industry and externalizes forex. If they control the local industry, they can be easily tempted to kill local production if it challenges their South African import. We should be thinking of expanding as well, not selling off…
its private campany they can sale resale as long as employees dont get affectaed Gvmnt can not do n thing if thy want thy an pull out
As if we have not had enough show me any good SA investment apart from Shoprite which exploits workers, kill local industry and just use Zambia as a dumping ground for south african products. By the end of the day Zamchick will be reduced to an outlet selling south african chicken.
It is all about making money, Anyone willing to enter the market will not be prevented because Zamchick is there, that is life under a free market economy, encouraging innovation and competition. What is important is Zambeef benefiting if yes, then let them go ahead.
Good deal indeed how l wish this company could list on the stock exchange so that it contributes to the growth of the capital market.l bet you it would be very interesting to have a food processing company on luse
ZAMBEEF is not only listed on the London Stock Exchange but also LUSE!!
@ Jay Jay, Zambeef is too small to be listed on the London Stock Exchange. It is listed on the small cap AIM i.e. Alternative Investment Market!
Yes, exactly but I’m typing in a layman’s language on here if I wrote “London AIM” not everyone will pick on that…
Imwe mwe bantu bikeni bola panshi first. Zamchick is currently facing stiff competition from small scale chicken keepers, and the well financed Chinese. Go to any urban town and ask about the major suppliers of chickens and eggs. Zamchick is almost into oblivion the way Crest chicken is. Large scale buyers of chickens and eggs such as Hotels and the restaurants are raring the birds on their own. Let Zamchick sell before it starts making losses!
U speaking the truth my man? Then I see a business opportunity when I get back to mother Zed!
Those rainbow main product, the braai packs are horrible. The chickens are stale & when they reach their expiry date, they take the off the “shelf” (deep freezer) & take them to their plant & recycle them. I don’t buy those braai packs.
The problem in Zambia is we don’t look at things in the long term we are short sighted…ask yourselves why is this RSA company spending so much for this stake?? Then post your comment this is why most people are unable to envision Prof. Chriwa’s dream as we are still thinking inside the box.
Wake up people!
i feel you.i cant even comment any further because you have done it for me.keep believing ..we shall overcome 1 day
A south African bottling company bought Kapri glass co only to arrive at a situation were all bottles come from SA today. Be careful with them.
It was a German company not South African.
hope its not another way of evading tax for the next 15 years or so…. just thinking aloud.
How exactly? Why all these cheap conspiracies? Is Tupac Shakur still allive?
U speaking the truth my man? Then I see a business opportunity when I get back to mother Zed!
Muletalikana pa nkoko bafituli
Thank you for letting us know, so that in the spirit of buy Zambian I can stop buying these fake imports where only SA benefits, the boers are in everything taking up Jobs Za$bians are qualified to do as expatriates, I can’t and won’t support any of their GM0o crap.
Its not a takeover its a 51%-49% Zambeef still remains in control, what has happened is like recapitalisation, Zambeef will receive $14million for the 49% stake given to Rainbow and rainbow will only benefit from the earnings and control goes to Rainbow the controlling entity still remains Zambeef. This mean Zambeef will expand its business with the funds at its disposal and create the employment that you talk about everyday, think of the multiplier effects of this transaction with objectivity and not the premitive way.
Why ulapanga icongo? if you do not want to consume their chicken just switch to village chicken capwa. lekeni abatemwa imicopo nabo balelya nokufwa na ma heart attack.
Me am switching to village chicken!!!
$14.25m is a lot of cash.with cash am comfident ZAMbeef mgt will invest wise as they have done ,of which most of us have seen how the have grown and achieved.with that cash they will increase levels of employment and will can only wish them success and please don’t allow GMOs in our country as SA have advanced in that area.
Finally, you want social and living proof that the machine actually does what it does. You want to hear good and bad things about it to get a better view on what to buy.
Marrie-Ann stop exposing your ignorance, iam a senior employee of Rainbow, The company has the highest quality standards in the whole chicken industry in the country, they are obliged by ISO standards to comply with SHE @ HIRA standards, just shut-up and keep your ignorance to your self for your information Rainbow products are in high demand inSA, i dont think they are under any forced circumstance to invest in Zambeef actualy the citizen of Zambia will benefit from this deal remember poultry is a cheap source of protein that Africa needs, stop talking trash.