Update on LonZim

12 Mar 2008 09:42

Lonrho PLC12 March 2008 12 March 2008 LONRHO PLC ("Lonrho" or the "Company") UPDATE ON LONZIM PLC Lonrho Plc ("Lonrho" or "the Company") (AIM: LONR) the expanding conglomeratewith a structured portfolio of African investments is pleased to provide anupdate on LonZim Plc ("LonZim"). LonZim (AIM: LZM) was admitted to trading on AIM on 11 December 2007 and wasestablished for the principal purpose of making investments in Zimbabwe and theBeira corridor in Mozambique. Lonrho owns 20% of LonZim and provides managementservices to LonZim. Paynet Limited LonZim announced on 5 March 2008 that it has signed an agreement to acquire a100 per cent shareholding in Paynet Limited, which in turn is the beneficiary ofLanuarna Trust Zimbabwe ("Lanuarna"). The consideration was US$3,187,000. Included in the acquisition is the newly built, modern commercial property inHarare from which Paynet Zimbabwe operates, valued at US$1,025,000 Based on the Zimbabwe Dollar monthly earnings for Lanuarna for 2007, convertedto US Dollar figures using the Old Mutual Implied Rate, the profit before taxfor 2007, after removing non-realised exchange rate losses and non-recurringexpenses, was US$569,000, giving a PBT multiple of 3.15. Lanuarna wholly owns three operating companies in Zimbabwe - Paynet Zimbabwe,Paywell and Autopay - and holds 100 per cent of the property holding company, LeHar. It also has a 51 per cent stake in a joint venture company, Tradanet. Blueberry International Services Limited LonZim announced on 6 March 2008 that it has exercised its call option toacquire the final 20 per cent of Blueberry International Services Limited ("Blueberry") for $1,362,500 from Coast2Coast Communications Investments (Pty)Limited. This follows LonZim's acquisition of an initial 80 per cent.shareholding in Blueberry in January 2008. Blueberry is an offshore company incorporated in the British Virgin Islands thatcontrols 60 per cent. of Celsys Limited ( "Celsys" ), a Zimbabwean publiclylisted company operating in the telecommunications and security printing sector;Blueberry also owns 100 per cent. of Gardoserve (Private) Limited ("Gardoserve"), a Zimbabwean private industrial chemical manufacturer and distributer trading under the "Millpal" brand. Since LonZim's acquisition of its initial 80 per cent stake in Blueberry,Celsys's share price has risen 325 per cent. in US$ terms, on the Harare StockExchange. Blueberry will change its name to LonZim Investments Limited. ENQUIRIES Lonrho Plc +44 (0)20 7016 5105David Lenigas, Executive Chairman +44 (0)7881 825 378Geoffrey White, Chief Executive Officer +44 (0)7717 307 308Emma Priestley, Executive Director +44 (0)7867 785 177 Pelham PRCharles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297903James MacFarlane +44 (0) 20 7743 6375 +44 (0) 7841 672831 Collins Stewart Europe : NOMAD to LonrhoHugh Field / Jonny Sloan +44 (0) 20 7523 8350 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• Lonrho Mining - www.lonrhomining.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 - www.saliners.com• Bytes and Pieces• Kwikbuild - www.kwikbuild.co.za This information is provided by RNS The company news service from the London Stock Exchange