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13 May 2008 10:00
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13Β May 2008
LONRHO PLC
("Lonrho"Β or theΒ "Company")
Lonrho acquires 100%Β South African Building Fabrication Company based inΒ CapeΒ Town.
Lonrho Plc (AIM: LONR), the conglomerate with a structured portfolio of African investments, is pleased to announce that it has signed an agreement to acquire a 100 per cent stake inΒ leadingΒ prefabricated building company Arnott Panels (Pty) LtdΒ which tradesΒ as Cool Maintenance.
Cool MaintenanceΒ specialises in the manufacture and erection of cold storage unitsΒ forΒ the foodΒ processing, storageΒ and other industries. Cool Maintenance was established in 1992 and operates from a factory inΒ Cape Town.
In 1995Β Cool MaintenanceΒ expandedΒ its activities to manufactureΒ and installΒ thermallyΒ insulated panels used to house electronic equipment. It hasΒ becomeΒ a major supplierΒ of base station housingsΒ to theΒ cellular networksΒ as they roll out transmissionΒ mastsΒ acrossΒ AfricaΒ clientsΒ thatΒ include MTN,Β Vodacom andΒ ZokΒ Cellular.Β
In addition Cool MaintenanceΒ manufacturesΒ insulated panels for use in modular housing, clinics, officesΒ and classrooms.Β Cool Maintenance is a major supplier toΒ e-Kwikbuild,Β a Lonrho companyΒ thatΒ is a majorΒ supplierΒ ofΒ modular building solutions to Governments,Β mining companies and private clientsΒ throughout southern AfricaΒ (www.e-kwikbuild.co.za).Β
The Acquisition
Cool Maintenance's accountsΒ for the year ended 28 February 2007Β reported a turnover of US$Β 7.1Β million andΒ totalΒ assets of US$ 3.5Β millionΒ and a PBT of US$Β 921,000. Management accountsΒ for theΒ year toΒ endΒ February 2008Β show turnover of US$ 7.4 million and PBT of US$ 910,000.Β
Under the agreement to purchase a 100% stake of Cool Maintenance, Lonrho will initially acquire aΒ 51% stakeΒ for a payment of ZAR 12.75 million. Lonrho will,Β over the next two years,Β acquire the remaining 49% in two equal tranches. TheΒ basic totalΒ purchase priceΒ isΒ thusΒ ZAR 25 millionΒ andΒ equates to approximately USD$3.1Β million. However,Β Β the twoΒ further paymentsΒ areΒ Β linked to theΒ auditedΒ PBT performance of Cool MaintenanceΒ in the financial years ending 28 FebruaryΒ 2009 and 2010.Β EachΒ payment will be ZAR 6.125 million plus interest accrued for the period should Cool Maintenance achieve a minimum PBT of ZAR 6 millionΒ in each year. Should Cool Maintenance not achieve the minimum warranted PBTΒ in each year,Β then theΒ year two and three purchase prices will be reduced by ZAR 3 for every ZAR 1Β shortfallΒ in warranted profits.Β
David Lenigas, Lonrho's Executive Chairman commented:
"TheΒ acquisitionΒ of Cool MaintenanceΒ complements our investment in Kwikbuild by adding manufacturing capacity to KwikbuildΒ toΒ deliver building solutions in Africa.
This acquisitionΒ will, in conjuction with e-Kwikbuilds soon to be commissioned new panel manufacturing plant inΒ Port Elizabeth, provide the necessary manufacturing capacity to fulfil the Lonrho Group's expanding order book for classrooms, mining and constructionΒ buildings,Β and factories.
The modular supply of base station housings to the cellular companies is a rapidly expanding market, and we plan to increase Cool Maintenance's capacity to take an even larger share of this pan African market."
LONRHO ENQUIRIES
|
LonrhoΒ Plc |
+44Β (0)20Β 7016Β 5105 |
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DavidΒ Lenigas,Β Executive Chairman |
+44Β (0)7881Β 825Β 378 |
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Geoffrey White, Chief Executive Officer |
+44 (0)7717 307 308 |
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EmmaΒ de Borchgrave,Β ExecutiveΒ Director |
+44Β (0)7867Β 785Β 177 |
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Pelham PR |
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CharlesΒ Vivian |
+44Β (0)Β 20Β 7743Β 6672 |
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Β |
+44Β (0)Β 7977Β 297903 |
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James MacFarlane |
+44Β (0)Β 20Β 7743Β 6375 |
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Β |
+44Β (0)Β 7841 672831 |
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Collins Stewart Europe : NOMAD to Lonrho |
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|
Hugh Field / Simon AlstonΒ |
+44Β (0)Β 20Β 7523Β 8350 |
NOTES TO EDITORS
About LONRHO:
Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughoutΒ Africa. The Company's shares are traded on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure, transportation, support services, hotels and natural resources. The Company has over 19,000 shareholders and substantial institutional backing to support its mandate to build a profitable business that plays a fundamental role in the development of the African economy.Β
Β
Since 2006, the Company has invested in or acquired control of:Β
Hotel Cardoso -Β www.hotelcardoso.co.mzΒ Β (retained)
Lonrho Mining -Β www.lonrhomining.comΒ
LubaΒ FreeportΒ -Β www.lubafreeport.comΒ
Fly540 -Β www.fly540.comΒ
Swissta Holdings -Β www.swissta.comΒ
SA Independent Liner Services -Β www.saliners.comΒ
Bytes and PiecesΒ www.bytespieces.comΒ
Kwikbuild -Β www.e-kwikbuild.co.zaΒ
LonZim -Β www.lonzim.co.ukΒ
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