Lonrho appointed John Deere
January 14 2009 - 9:05AM
UK Regulatory
TIDMLONR
RNS Number : 6353L
Lonrho PLC
14 January 2009
14th January 2009
LONRHO PLC
("Lonrho" or the "Company")
"Lonrho appointed John Deere distributor for Angola"
Lonrho Plc (AIM: LONR), the conglomerate with a structured portfolio of African
investments, is pleased to announce that it's wholly owned agricultural
subsidiary, Lonrho Agriculture, has signed an agreement to become the John Deere
tractor and agricultural equipment distributor for Angola.
A new Angolan company, LonAgro Equipamentos Agricolas Lda (LonAgro) has been
established and will be owned as to 51% Lonrho Agriculture and 49% as to
Agromundo Assessoria Agricola Lda, a well established company in the Angolan
agricultural sector (that represents international companies such as Omnia from
South Africa; BASF Agrochemicals from Germany and Bauer Irrigation from Austria)
a well established company in the Angola agricultural sector.
John Deere is the world's leading supplier of agricultural equipment with an
annual turnover of over US$ 2 billion and is renowned for its dealer network and
the support, back up and training that this brings.
LonAgro has purchased a 20,000m2 site to be the initial John Deere branch in
Catete, in the Bengo Province, 80km east of Luanda and plans to have this head
office branch open and stocked by July 2009. At least two further branches are
planned to be developed throughout the country in 2010 and 2011. Each branch
will have full showroom, sales, administration, training and servicing
facilities.
The Angolan Government has announced that the development of agricultural
projects is a national priority and GESTERRA (Gestao de Terras Aravais), a
parastatal Government Agricultural Promotion agency and the Ministry of
Agriculture, through the Instituto de Desenvolvimento Agricola (IDA) are
implementing a series of investment packages to encourage and support Angolan
agriculture.
The budgeted investment to establish and roll out the John Deere dealership in
Angola is US$ 6 million, which will be funded by way of local Angolan bank debt
and equity. Lonrho will fund up to US$ 1.5 million of the equity from its
existing cash resources which had been allocated as previously announced to
agricultural projects.
David Lenigas, Lonrho's Executive Chairman commented:
"Angola is a thriving economy in Africa and the quantity of large scale
private sector investment into the agricultural sector and the biofuels sector,
combined with the Governments clear mandate to develop the agricultural economy,
provides strong commercial potential for LonAgro.
"John Deere is not only the leading world supplier of agricultural equipment,
but importantly, is as focused as Lonrho on ensuring that the business we build
provides the correct levels of technical support, training and spares
availability to ensure that John Deere develops into the strongest partner in
the agricultural sector in Angola."
LONRHO ENQUIRIES
+----------------------------------------------+---------------------------+
| Lonrho Plc | +44 |
| | (0)20 |
| | 7016 |
| | 5105 |
+----------------------------------------------+---------------------------+
| David Lenigas, Executive | +44 |
| Chairman | (0)7881 |
| | 825 378 |
+----------------------------------------------+---------------------------+
| Geoffrey White, Chief | +44 |
| Executive Officer | (0)7717 |
| | 307 308 |
+----------------------------------------------+---------------------------+
| Emma de Borchgrave, | +44 |
| Executive Director | (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 |
| Collins Stewart Europe : | (0) |
| NOMAD to Lonrho | 7841 |
| Hugh Field | 672831 |
| | +44 |
| | (0) 20 |
| | 7523 |
| | 8350 |
+----------------------------------------------+---------------------------+
| | |
+----------------------------------------------+---------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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