Lonrho expands its John Deere dealership network (1818V)
January 09 2012 - 2:00AM
UK Regulatory
TIDMLONR
RNS Number : 1818V
Lonrho PLC
09 January 2012
09 January 2012
Lonrho Plc
("Lonrho" or the "Company")
Lonrho Plc expands its exclusive John Deere dealership network
in Africa adding Tanzania and South Sudan to its current
operations
Lonrho is pleased to announce that it has completed a share
purchase agreement to acquire 100% of Lonagro Tanzania Limited and
has also entered into a Memorandum of Understanding directly with
John Deere to become the exclusive John Deere dealership in South
Sudan.
Lonrho is already the exclusive John Deere dealer for Mozambique
and Angola, where it has seen strong demand for John Deere products
as the mechanised farming market expands across Africa.
Lonagro Tanzania is based in Dar es Salaam, the capital of
Tanzania, and has the exclusive John Deere dealership for Tanzania.
Tanzanian growth is expected to outperform both sub-Saharan Africa
and global growth rates over the coming years with agriculture
contributing 45% of GDP.
The market for agricultural equipment in Tanzania is already
substantial and is set to increase rapidly as the Tanzanian
Government is giving significant attention to the agriculture
sector through the Southern Agricultural Growth Corridor of
Tanzania (SAGCOT), a public-private partnership that aims to
stimulate commercial scale agricultural productivity in
Tanzania.
The consideration for the acquisition of Lonagro Tanzania is USD
1.4 million (GBP0.9m), funded from the Company's existing cash
resources.
Lonrho is further pleased to announce that it has also entered
into a Memorandum of Understanding directly with John Deere to
become the exclusive John Deere dealership in South Sudan with a
view to beginning operations in the second quarter of 2012.
South Sudan has a vast natural resource base and huge
agricultural potential, with more than 90% of the land being
suitable for farming. Significant foreign direct investment and
international donor funding is forecast to support large scale
agricultural development following the independence of South
Sudan.
David Lenigas, Lonrho's Executive Chairman commented:
"The expansion of Lonrho's exclusive John Deere dealerships,
adding Tanzania and South Sudan, builds on the Company's excellent
relations with John Deere and our continued aim to develop John
Deere distribution in the agricultural markets in Africa. The
established Lonrho / John Deere dealerships in Mozambique and
Angola are demonstrating that the fully supported approach offering
comprehensive maintenance, training and spare part support, and not
just sales, delivers increased market share and long term growth
for the businesses."
Len Brand, Managing Director of John Deere (Pty) commented:
"John Deere are delighted to continue to work with Lonrho and
further build the cooperation and relationship between the
companies. The strong working relationship between John Deere and
Lonrho benefits customers and demonstrates our mutual commitment to
Africa."
Enquiries
Lonrho Plc +44 (0) 20 7016 5105
David Lenigas
Geoffrey White
David Armstrong
Pelham Bell Pottinger +44 (0) 20 7861 3232
Gavin Davis
Charles Goodwin
Charlie Harrison
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQUGUUWGUPPPUM
Lonrho (LSE:LONR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Lonrho (LSE:LONR)
Historical Stock Chart
From Jul 2023 to Jul 2024