LONR Lonrho

 

TIDMLONR 
 
RNS Number : 3183H 
Lonrho PLC 
18 February 2010 
 

 
18 February 2010 
 
                                   LONRHO PLC 
                   ("Lonrho" or the "Company" or the "Group") 
 
Lonrho Plc agricultural division acquires the John Deere and Komatsu dealerships 
                                 for Mozambique 
 
Lonrho Plc (AIM : LONR) is delighted to announce that it has signed a formal 
Heads of Agreement to  acquire 100% of Trak-Auto Lda, (Trak-Auto) the existing 
holder of the John Deere and Komatsu dealerships in Mozambique. John Deere is a 
leading supplier of agricultural equipment and Komatsu is one of the world's 
largest manufacturers of construction, mining and utility equipment. 
Trak-Auto sales were US$ 9.9 million in the year to December 2008 with a gross 
profit of US$ 1.4 million. Net assets at that date were US$ 0.6 million.  Lonrho 
is looking to build revenues and profit substantially over the coming years. The 
Mozambique market for agricultural, construction and mining equipment is growing 
due to the number of industrial scale agricultural, bio-fuel and large coal and 
mineral projects that are currently being developed across the country. 
Trak-Auto, a local Mozambique company, holds the exclusive licences for both 
John Deere and Komatsu products in Mozambique and sold 104 John Deere units and 
13 Komatsu units in 2009. It services customer's requirements from its branches 
in Maputo, Pemba and Beira and via an agent in Tete. 
The acquisition price for 100% of Trak-Auto is US$ 2.0 million payable on 
completion, and a further US$ 1.0 million per year for the following three years 
subject to the business meeting agreed growth targets in relation to sales and 
profits. The existing management will remain with the business. 
Lonrho will arrange working capital for the business to ensure that it can fund 
the growth that is forecast. 
David Lenigas, Lonrho's Executive Chairman stated: 
With the combination of Lonrho's local expertise and John Deere and Komatsu's 
excellent product ranges and professional approach to markets we expect to see 
strong growth for both brands in Mozambique. I feel sure that the commitment by 
all parties to provide the highest quality of support, service and training for 
the products delivered will build brand loyalty and market share. 
Lonrho already has a number of current businesses in Mozambique ranging from the 
best hotel to the largest IT company, together with its agricultural interests. 
Mozambique is rapidly developing into a strong African economy and is a good 
place to do business. The country has some really significant new projects being 
developed. 
 
Enquiries 
 
+---------------------------------------+---------------------+ 
| Lonrho Plc                            |                     | 
+---------------------------------------+---------------------+ 
| David Lenigas, Executive Chairman     | +44 (0)20 7016 5105 | 
+---------------------------------------+---------------------+ 
| Geoffrey White, Chief Executive       | +44 (0)20 7016 5105 | 
| Officer                               |                     | 
+---------------------------------------+---------------------+ 
| David Armstrong, Finance Director     | +44 (0)20 7016 5105 | 
+---------------------------------------+---------------------+ 
|                                       |                     | 
+---------------------------------------+---------------------+ 
|                                       |                     | 
+---------------------------------------+---------------------+ 
| Pelham Bell Pottinger                 |                     | 
+---------------------------------------+---------------------+ 
| Charles Vivian                        | +44 (0) 20 7337     | 
|                                       | 1538                | 
+---------------------------------------+---------------------+ 
|                                       | +44 (0) 7977 297903 | 
+---------------------------------------+---------------------+ 
| James MacFarlane                      | +44 (0) 20 7337     | 
|                                       | 1527                | 
+---------------------------------------+---------------------+ 
|                                       | +44 (0) 7841 672831 | 
+---------------------------------------+---------------------+ 
| Klara Kaczmarek                       | +44 (0) 207337 1524 | 
+---------------------------------------+---------------------+ 
|                                       | +44 (0) 7912 539    | 
|                                       | 973                 | 
+---------------------------------------+---------------------+ 
|                                       |                     | 
+---------------------------------------+---------------------+ 
| Beaumont Cornish Limited(Nomad)       |                     | 
+---------------------------------------+---------------------+ 
| Rosalind Hill Abrahams                | +44 (0) 20 7628     | 
|                                       | 3396                | 
+---------------------------------------+---------------------+ 
| Roland Cornish                        | +44 (0) 20 7628     | 
|                                       | 3396                | 
+---------------------------------------+---------------------+ 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCFMGMZLNLGGZM 
 

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

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