Lonrho Regulatory News (LONR)

21 Sep 2007 07:01

Lonrho PLC21 September 2007 21 September 2007 Lonrho Plc ("Lonrho" or "the Company") Lonrho to acquire 51% stake and control of African Microfinance Bank Lonrho (AIM : LONR), the conglomerate with a structured portfolio of Africaninvestments, is pleased to announce that it has signed a Letter of Intent and aformal Term Sheet to acquire 51% and Board control of the MozambiquanMicrofinance Bank 'Socremo - Banco de Microfinancas'. Lonrho will take equity and Board control of the Bank and has agreed to buy outa series of smaller shareholders to restructure the bank. Under the newstructure, Lonrho will own 51% of the Bank with other shareholders being AfriCapMicrofinance Fund (www.africapfund.com) 21%, GAPI 11%, and Nordic MicroCap(www.microcap.se) 10% with the remaining equity being held in Treasury. Socremo has developed significantly since it was founded in 1999. TheMicrofinance market has matured from NGO based to the formal banking sector.Socremo has progressed into a structured and formal financial institution thatprovides a growing range of financial products to this market sector andsupports expanding SME's (Small and Medium Enterprises). Socremo is Mozambique's second largest Microfinance bank with 30,000 customersserviced through eight branches. The bank employs 223 people and has a strongand quality management structure in place. The number of accounts at the bankhas grown 160% and the bank's credit portfolio has grown 103% during the pastyear. The transaction is subject to Reserve Bank of Mozambique approval. David Lenigas, Chairman and CEO of Lonrho commented: "The services provided by Microfinance Banks are an essential building block inthe support of sustainable economic and social development in Africa. We seethis market as one of the most fundamental opportunities for Lonrho to partakein creating stable and viable economies throughout the Continent. Micro loans,savings and insurance can transform the lives of people in developing countrieswho want a chance to work their way out of poverty. Socremo is a successful andreliable institution and Lonrho will utilise Socremo's experience and knowledgeas a base to expand this microfinance model into other countries." 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 This information is provided by RNS The company news service from the London Stock Exchange