Lonrho Regulatory News (LONR)

2 Oct 2007 07:01

Lonrho PLC02 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, ispleased to announce that it has completed the acquisition of an 80% stake inBlueberry International Services Limited ("Blueberry"), an offshore companyincorporated in the BVI, for US$5.45 million in cash. The acquisition providesa strategic position in two established Zimbabwean industries. Blueberry controls 60% of Celsys Limited ("Celsys"), a Zimbabwean publiclylisted company operating in the telecommunications sector; and 100% ofGardoserve (Private) Limited ("Gardoserve"), a Zimbabwean private industrialchemical manufacturer and distributor. Celsys Celsys was established in 1996 and listed on the Zimbabwe Stock Exchange in2003. It comprises four core and interlinked divisions: Celsys Comms; CelsysPrint; Celsys IT; and Celsys Marketing. The company is an important employerwith over 140 staff and plays a significant role in maintaining and growing theZimbabwean communications industry. Its core business is information and communications technology (ICT). CelsysComms comprises: The Comm Shop which sells and repairs cell phones and is thesole authorised Nokia Repair Centre in Zimbabwe; Celsys C-phone, a vibrantcommunity payphone project established four years ago, and Zimbabwe's dominantbrand in the payphone market. With its superior airtime tracking software andfully automated operation, C-Phone has created viable livelihoods for rural,peri-urban and urban Zimbabweans, providing a critical communications serviceinto Zimbabwe's rural areas. Celsys Print is Zimbabwe's largest independent printer of cheque books and othersecurity documents for banks and financial institutions, and is a major producerof cell phone recharge cards, recognised for its excellent quality and productdelivery. Celsys IT sells, operates and maintains ATMs and distributes Sophos IT securityproducts across sub Saharan Africa. Sophos is the internationally recognisedanti-virus, anti-spam and information technology security vendor, offeringtechnology security for businesses in over 150 countries. Celsys IT last yearacquired the operations of Hillside Technologies Southern Africa, an IT businessproviding software security to large businesses and banks, and with it, SophosMaster Distributor status. Gardoserve Gardoserve, trading as Millpal, has over 20 years experience selling chemicalsto the textile and raw materials chemical industry. Millpal continues tomanufacture and distribute chemicals, flavourants, and colourants in Zimbabweand for export to the metal treatment, textile, electroplating, epoxy andsolvent markets. Lonrho's acquisition of an interest in Celsys Ltd and Millpal represents itsfirst investment into Zimbabwe following the announcement of LonZim PLC. LonZimis a separate and specific fund that Lonrho is establishing to build a portfolioof investments in Zimbabwe and neighbouring countries. The flotation of LonZimon AIM is planned for late October. The holding in Blueberry, and any othertransactions meeting the investment criteria of Lonzim already completed byLonrho, will be offered to LonZim at cost. David Lenigas, the Chairman and CEO of Lonrho, Emma Priestley, Director ofLonrho and Geoffrey White, Chief Operating Officer of Lonrho, will be joiningthe Celsys and Millpal Boards. Extensive due diligence has been undertaken on the transaction by Lonrho and itsprofessional advisors in Zimbabwe. Acting for Lonrho on the acquisition wereaccountants Ernst & Young and the Zimbabwean law firm, Winterton's. Commenting on inward investment into Zimbabwe, Lonrho's Executive Chairman DavidLenigas said: "Lonrho believes that there is a significant opportunity to bring foreign directinvestment to grow existing businesses in Zimbabwe. Now is the time to beestablishing and supporting businesses that can develop. The economy hassuffered from severe underinvestment. "Lonrho is committed to investing throughout Africa to develop and support thegrowth of African business. We believe that cautious and well informed, longterm investment in Zimbabwe will offer returns not only to Lonrho and Lonzimshareholders but also to Zimbabwean business and the Zimbabwean economy." --oo-- ENQUIRIES Lonrho Plc +44 (0) 20 7016 5105David Lenigas, Chief Executive +44 (0)7881 825 378Emma Priestley, Executive Director +44 (0)7867 785 177 Pelham PRCharles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297903Alisdair Haythornthwaite +44 (0) 20 7743 6676 +44 (0) 7714 721379 Collins Stewart EuropeHugh Field +44 (0) 20 7523 8350Jonny Sloan NOTES TO EDITORS About LONRHO: Lonrho Plc is an expanding conglomerate that is rapidly growing a successfulbusiness throughout Africa. The Company is listed on the London AIM stockexchange (LONR). Lonrho is strategically focused on the development of businessopportunities in infrastructure, transportation, support services and naturalresources. The Company has over 20,000 shareholders and substantialinstitutional backing to support its mandate to build a profitable business thatplays 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