Acquisition
October 02 2007 - 3:01AM
UK Regulatory
RNS Number:9266E
Lonrho PLC
02 October 2007
2 October 2007
Lonrho Plc
("Lonrho" or "the Company")
Lonrho completes strategic acquisition in Zimbabwe with long term potential.
Acquires controlling stake in Zimbabwe Stock Exchange listed Celsys Ltd and
control of Millpal Ltd
Lonrho, the conglomerate with a structured portfolio of African investments, is
pleased to announce that it has completed the acquisition of an 80% stake in
Blueberry International Services Limited ("Blueberry"), an offshore company
incorporated in the BVI, for US$5.45 million in cash. The acquisition provides
a strategic position in two established Zimbabwean industries.
Blueberry controls 60% of Celsys Limited ("Celsys"), a Zimbabwean publicly
listed company operating in the telecommunications sector; and 100% of
Gardoserve (Private) Limited ("Gardoserve"), a Zimbabwean private industrial
chemical manufacturer and distributor.
Celsys
Celsys was established in 1996 and listed on the Zimbabwe Stock Exchange in
2003. It comprises four core and interlinked divisions: Celsys Comms; Celsys
Print; Celsys IT; and Celsys Marketing. The company is an important employer
with over 140 staff and plays a significant role in maintaining and growing the
Zimbabwean communications industry.
Its core business is information and communications technology (ICT). Celsys
Comms comprises: The Comm Shop which sells and repairs cell phones and is the
sole authorised Nokia Repair Centre in Zimbabwe; Celsys C-phone, a vibrant
community payphone project established four years ago, and Zimbabwe's dominant
brand in the payphone market. With its superior airtime tracking software and
fully automated operation, C-Phone has created viable livelihoods for rural,
peri-urban and urban Zimbabweans, providing a critical communications service
into Zimbabwe's rural areas.
Celsys Print is Zimbabwe's largest independent printer of cheque books and other
security documents for banks and financial institutions, and is a major producer
of cell phone recharge cards, recognised for its excellent quality and product
delivery.
Celsys IT sells, operates and maintains ATMs and distributes Sophos IT security
products across sub Saharan Africa. Sophos is the internationally recognised
anti-virus, anti-spam and information technology security vendor, offering
technology security for businesses in over 150 countries. Celsys IT last year
acquired the operations of Hillside Technologies Southern Africa, an IT business
providing software security to large businesses and banks, and with it, Sophos
Master Distributor status.
Gardoserve
Gardoserve, trading as Millpal, has over 20 years experience selling chemicals
to the textile and raw materials chemical industry. Millpal continues to
manufacture and distribute chemicals, flavourants, and colourants in Zimbabwe
and for export to the metal treatment, textile, electroplating, epoxy and
solvent markets.
Lonrho's acquisition of an interest in Celsys Ltd and Millpal represents its
first investment into Zimbabwe following the announcement of LonZim PLC. LonZim
is a separate and specific fund that Lonrho is establishing to build a portfolio
of investments in Zimbabwe and neighbouring countries. The flotation of LonZim
on AIM is planned for late October. The holding in Blueberry, and any other
transactions meeting the investment criteria of Lonzim already completed by
Lonrho, will be offered to LonZim at cost.
David Lenigas, the Chairman and CEO of Lonrho, Emma Priestley, Director of
Lonrho and Geoffrey White, Chief Operating Officer of Lonrho, will be joining
the Celsys and Millpal Boards.
Extensive due diligence has been undertaken on the transaction by Lonrho and its
professional advisors in Zimbabwe. Acting for Lonrho on the acquisition were
accountants Ernst & Young and the Zimbabwean law firm, Winterton's.
Commenting on inward investment into Zimbabwe, Lonrho's Executive Chairman David
Lenigas said:
"Lonrho believes that there is a significant opportunity to bring foreign direct
investment to grow existing businesses in Zimbabwe. Now is the time to be
establishing and supporting businesses that can develop. The economy has
suffered from severe underinvestment.
"Lonrho is committed to investing throughout Africa to develop and support the
growth of African business. We believe that cautious and well informed, long
term investment in Zimbabwe will offer returns not only to Lonrho and Lonzim
shareholders but also to Zimbabwean business and the Zimbabwean economy."
--oo--
ENQUIRIES
Lonrho Plc +44 (0) 20 7016 5105
David Lenigas, Chief Executive +44 (0)7881 825 378
Emma Priestley, Executive Director +44 (0)7867 785 177
Pelham PR
Charles Vivian +44 (0) 20 7743 6672
+44 (0) 7977 297903
Alisdair Haythornthwaite +44 (0) 20 7743 6676
+44 (0) 7714 721379
Collins Stewart Europe
Hugh Field +44 (0) 20 7523 8350
Jonny Sloan
NOTES TO EDITORS
About LONRHO:
Lonrho Plc is an expanding conglomerate that is rapidly growing a successful
business throughout Africa. The Company is listed on the London AIM stock
exchange (LONR). Lonrho is strategically focused on the development of business
opportunities in infrastructure, transportation, support services and natural
resources. The Company has over 20,000 shareholders and substantial
institutional backing to support its mandate to build a profitable business that
plays a fundamental role in the development of the African economy.
Since 2006, the Company has invested in or acquired control of:
* Hotel Cardoso - www.hotelcardoso.co.mz (retained)
* Nare Diamonds - www.narediamonds.com
* Luba Freeport - www.lubafreeport.com
* Fly540 - www.fly540.com
* Norse Air - www.norseair.co.za
* Swissta Holdings - www.swissta.com
* SA Independent Liner Services
* Bytes & Pieces
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQUAUWRBRRRRAA
Lonrho (LSE:LONR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Lonrho (LSE:LONR)
Historical Stock Chart
From Jul 2023 to Jul 2024
