Tate & Lyle disposes of ZSR Corporation Ltd of Zimbabwe and investment in Sugarmark (Namibia) Pty Ltd

| Filed in:
Tate & Lyle PLC announces the sale of Tate & Lyle Investments (Africa) Ltd ("TLIA") to a Botswana-registered holding company CBAQ (Pty) Limited ("CBAQ"). TLIA is a holding company that owns the Group's 50.1% interest in ZSR Corporation Ltd ("ZSR"), a sugar refiner and industrial holding company based in Zimbabwe, and its 33.3% interest in Sugarmark (Namibia) Pty Ltd ("Sugarmark"), a joint venture holding company with interests in sugar marketing in Namibia. The total consideration of £3.25 million has been received in cash and will be used to reduce Group debt.

CBAQ will be led by ZSR management and will include the ZSR Workers’ Trust, with financial support from ABC Holdings Limited.

For the financial year ending March 2001, ZSR had consolidated net assets of £12.8 million (Group share £6.4 million) and profits of £8.4 million (Group share £4.2million). The Group’s investment in Sugarmark had a book value of £0.1 million at March 2001 and contributed £0.3 million to Group profit before tax for the financial year ending on that date. The pronounced depreciation of the Zimbabwean dollar since March 2001 means that this transaction will give rise to a profit on disposal of less than £1 million.

Larry Pillard Chief Executive said, "This sale is another step in the Group's strategy of focusing activities on the major core businesses. Both ZSR and Sugarmark are profitable and well run. However, we feel that ZSR in particular will be better developed as a Zimbabwean enterprise and this transaction will effectively transfer ownership to employees of ZSR. We thank all of the employees for their contribution to Tate & Lyle and wish them every success for the future."

About Tate & Lyle: 
Tate & Lyle is a global provider of solutions and ingredients for food, beverage and industrial markets.

Tate & Lyle operates through two global divisions, Food & Beverage Solutions and Primary Products, supported by the Innovation and Commercial Development and Global Operations teams. Food & Beverage Solutions is focused on growth by building leading positions globally in the categories of beverages, dairy, and soups, sauces and dressings. Primary Products is focused on delivering steady earnings and generating cash.

Food & Beverage Solutions consists of: Texturants, including speciality starches; Sweeteners, including low- and no-calorie sweeteners; and a Health and Wellness portfolio comprising mainly speciality fibres; and Stabilisers and Functional Systems, which are bespoke ingredient blends that ensure foods retain their structure.

Primary Products consists of high-volume sweeteners, industrial starches and fermentation products (primarily acidulants).  It also sells co-products from the corn milling process as animal nutrition.

Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. In the year to 31 March 2020, Tate & Lyle sales totalled £2.9 billion. For more information, please visit http://www.tateandlyle.com or follow Tate & Lyle on Twitter or Linkedin.