LONR Lonrho

RNS Number:3454O
LonZim PLC
20 February 2008

20th February 2008

                                   LONZIM Plc


             LonZim acquires strategic Don Carlos and Estoril Hotel
                           development sites in Beira



LonZim Plc ("LonZim" or the "Company"), which has been established for the
principal purpose of making investments in Zimbabwe and the Beira corridor in
Mozambique, today announces that it has acquired a 79 per cent. shareholding in
Aldeamento Turistico de Macuti, SARL. ("ATdeM").  ATdeM owns the historic Don
Carlos and the Estoril hotel sites on a 300,000 m2 plot of land, including 1.5
km of beach front, in central Beira on the Mozambique coast (the "Site").

LonZim plans to demolish the two existing hotel properties and develop a luxury
hotel on the Site, to be operated and managed by an entity owned by Lonrho plc.
This luxury hotel will have conference facilities, a training centre, retail
mall, offices and logistics units.  The Site is already zoned for commercial
development purposes.

Beira is described as the 'coast of Zimbabwe' and is the main supply route from
the sea to Zimbabwe. As a result, LonZim sees strategic investments in support
services in Beira as inextricably linked and crucial to the recovery of Zimbabwe
and its economy.

The acquisition cost of the 79 per cent. shareholding in ATdeM was US$4,250,000.
LonZim has funded this out of its cash resources.  The remaining 21 per cent.
shareholding in ATdeM is owned (i) as to 11.4 per cent. by the Mozambican
Government through IGEPE, the Government investment fund, and (ii) as to 9.6 per
cent by the Beira Municipality.  ATdeM holds no assets other than the Site and
has never traded.

LonZim has also agreed to meet the costs, up to a maximum of US$1,500,000, of
arrears, penalties and charges which are historically outstanding and payable to
the Mozambican Government in relation to the Site.



David Lenigas, Executive Chairman of LonZim commented :

"This is an excellent investment opportunity for LonZim. Beira has always been
seen by the Company as a region that will recover rapidly when Zimbabwe's
economy turns. This location, in central Beira, was historically very active
when Zimbabwe had a thriving economy. It is clear that the Beira region will
again become fundamental for servicing Zimbabwe's demands for accommodation,
office space and services.

This is enhanced by the strength and stability of the Mozambican economy and the
economic growth that is occurring within the Beira region of Mozambique.

This acquisition further endorses LonZim's focus on identifying investment
opportunities, both in Zimbabwe and Beira, that will position the Company to
become a major participant in infrastructure, industrial, support and transport
sectors as the Zimbabwe economy recovers."





ENQUIRIES

Lonrho Plc                                                  +44 (0)20 7016 5105
David Lenigas, Executive Chairman                           +44 (0)7881 825 378
Geoffrey White, Chief Executive Officer                     +44 (0)7717 307 308
Emma Priestley, Executive Director                          +44 (0)7867 785 177

Pelham PR
Charles Vivian                                              +44 (0) 20 7743 6672
                                                            +44 (0) 7977 297903
James MacFarlane                                            +44 (0) 20 7743 6375
                                                            +44 (0) 7841 672831

Collins Stewart Europe: NOMAD
Helen Goldsmith                                             +44 (0) 20 7523 8350




NOTES TO EDITORS

About LONZIM:

LonZim Plc ("LonZim") is a company focused on developing and acquiring business
opportunities primarily in Zimbabwe and the region of Mozambique known as the
Beira Corridor, which links Zimbabwe to the coast.  LonZim was listed on the
London AIM stock exchange on 11th December 2007 after raising �29.16 million.
LonZim is 20 per cent. owned and managed by Lonrho Plc (AIM: LONR) a company
strategically focused on the development of business opportunities in
infrastructure, transportation, support services and natural resources
throughout Africa.


Since listing in December 2007, LonZim has invested in or acquired control of:



*   Celsys Limited     www.celsys.co.zw

*   Gardoserve (Private) Ltd   t/a  Millpal Chemicals




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

ACQMGGMZRLGGRZM

Lonrho (LSE:LONR)
Historical Stock Chart
From Jun 2024 to Jul 2024

Lonrho (LSE:LONR)
Historical Stock Chart
From Jul 2023 to Jul 2024