RAINBOW CHICKEN LIMITED - Announcement Of The Purchase Of A 49% Shareholding In Zambeef Plc 100% Subsidiary Zam Chick Limited

Announcement Of The Purchase Of A 49% Shareholding In Zambeef Plc 100% Subsidiary Zam Chick Limited

RAINBOW CHICKEN LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1966/004972/06)
ISIN: ZAE000019063
Share Code: RBW
(“RCL")

ANNOUNCEMENT OF THE PURCHASE OF A 49% SHAREHOLDING IN ZAMBEEF PLC
100% SUBSIDIARY ZAM CHICK LIMITED

RCL announces that it has reached agreement with Zambeef PLC
(“Zambeef”) of Zambia, for the purchase of 49 per cent of
Zambeef’s shareholding in Zam Chick Limited (“Zam Chick”) for
US$14.25m in cash. Zam Chick 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. It
has an established track record in operating in African markets
with operations in Zambia, Ghana and Nigeria. This is an exciting
opportunity for both Zambeef and RCL to work together in order to
take the poultry industry in Zambia to a new level. Zambeef and
RCL are each entitled to appoint 2 directors to the Zam Chick
board of directors, with Zambeef continuing to manage the day to
day operations of Zam Chick and RCL providing technical
assistance.

The transaction is subject to the fulfilment or waiver, as the
case may be, of inter alia the following conditions:

  •   Competition and Consumer Protection    Commission   of   Zambia
      approval; and
  •   South African Reserve Bank approval.

The short term impact on earnings is not anticipated to be
material. The transaction falls below the threshold for a category
transaction for RCL in terms of the JSE Limited Listings
Requirements.

The transaction will be funded from a portion of the proceeds from
the rights offer as announced on SENS on 6 December 2012.

Durban
4 February 2013

Merchant Bank and Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 04/02/2013 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.