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."
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About Tate & Lyle:
Supported by our 160-year history of ingredient innovation, we partner with customers to provide consumers with healthier and tastier choices when they eat and drink. We are proud that millions of people around the world consume products containing our ingredients every day.
Through our expertise in sweetening, fortification, and texture, we develop ingredient solutions which reduce sugar, calories, and fat, add fibre and protein, and provide texture and stability in categories including beverages, dairy, bakery, snacks, soups, sauces, and dressings.
We have more than 3,500 employees working in around 57 locations across 39 countries. Science, Solutions, Society is our brand promise and how we will achieve our purpose of Transforming Lives Through the Science of Food. By living our purpose we believe we can successfully grow our business and have a positive impact on society. We live our purpose in three ways, by supporting healthy living, building thriving communities and caring for our planet.
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 2023, Tate & Lyle revenue from continuing operations totalled £1.75 billion. For more information, please visit https://www.tateandlyle.com or follow Tate & Lyle on Linkedin, X (Twitter), Facebook or YouTube.
