Zambian High Court Rules Sadot Agreements Invalid, Forcing Company To Relinquish 5,000 Acres Of Farmland And Pay Litigation Costs

On December 11, 2025, the High Court for Zambia (Commercial Division) delivered a judgment in the case of Cropit Farming Limited v. Sadot LLC (2025/HPC/0184). The Court declared the Pre-Conditional Offer Agreement, the Purchase of Receivables and Validation Agreement, and the Joint Venture Agreement between the parties to be invalid, non-binding, and unenforceable. As a result, Sadot Group Inc. (the "Company"), through its 70%-owned subsidiary Sadot Enterprises Limited, will lose possession, control, and ownership of approximately 5,000 acres of farmland in Mkushi, Zambia, which had been placed in escrow pursuant to the invalidated agreements. The Court dismissed Cropit Farming Limited's claims for monetary damages but ordered Sadot LLC, a wholly owned subsidiary of the Company, to pay Cropit Farming Limited's litigation costs. The Company's counterclaims were also dismissed.

 

The farmland was acquired in August 2023 as part of the Company's agri-commodities operations. The Company is currently evaluating the financial and operational impact of this judgment, including potential asset impairments, and will provide further updates as necessary.