Lonrho Regulatory News (LONR)

19 Jun 2007 09:00

Lonrho PLC19 June 2007 19 June 2007 LONRHO PLC ("Lonrho" or "the Company") Lonrho plans to develop new airline in Angola Lonrho (AIM: LONR) has signed an exclusive Memorandum of Understanding ("MOU")with Sociedade De Gestate E Participacoes Financieras SARL ("GEFI"), one of thelargest internal investment companies in Angola. Lonrho plans to develop a new airline in Angola for the passenger, freight,leasing and charter markets with GEFI, through their wholly owned subsidiaryPlanar, an aircraft operating agency, that currently owns warehousing and officefacilities at Luanda airport. GEFI also owns further facilities throughout thecountry, including the required flight permissions and licences to operate thenew airline. Lonrho's exposure within the aviation sector puts it in a strong position tomanage the new airline. Subsidiaries include the Budget airline Fly 540operating in East Africa and Norse Air, an aviation logistics company operatingacross a number of countries. The MOU provides a three month exclusive period for the parties to review theopportunities in the Angolan aviation market and structure and commence thedevelopment of the new airline. David Lenigas, Chairman and Chief Executive Officer of Lonrho, commented: "Today's announcement is another example of Lonrho's strategy of investing intoAfrican infrastructure. The MOU with GEFI should allow Lonrho to develop a newairline to support Angola's strong economy, which is being aided by acceleratedgrowth from oil and diamond revenues. By partnering with GEFI, and its established infrastructure, we envisage thatLonrho will utilise its expertise and build on its aviation network. We believethat the new airline can rapidly become a significant part of an expandingdomestic market in Angola and a buoyant natural resources market across Africa. Finally, Lonrho believes that good aviation services provide one of thefundamental legs of the infrastructure that Africa requires to grow." For further information, please contact: 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 297 903Alisdair Haythornthwaite +44 (0) 20 7743 6676 +44 (0) 771 472 1379 Collins StewartSimon Atkinson +44 (0) 20 7523 8306 About GEFI: GEFI is one of the largest internal investment company's in Angola, withsuccessful joint ventures in more than forty companies in the industrial,services and financial sectors including CUCA (Angola's largest brewery), Portoperations with Maersk and in the financial sector with Banco Sol. 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.comBrinkley Mining - www.brinkley-mining.comLuba Freeport - www.lubafreeport.comFly540 - www.fly540.comNorse Air - www.norseair.co.zaSwissta Holdings - www.swissta.comCountermine plc - www.countermine.com This information is provided by RNS The company news service from the London Stock Exchange