Lonrho Acquires Rights to Aquamine Natural Spring Water and Announces Development of a Substantial South African Water Company

4 February 2008
Content from a Premium Partner
Lonrho (London)
press release

Lonrho plc (AIM: LONR) today announces that it will establish a new water company in South Africa to meet the growing demand for premium quality, glass bottled water in Johannesburg.

The new company, Lonrho Springs SA Pty Ltd (Lonrho Springs ) has acquired the existing water use rights from the Aquamine ( Propriety ) Limited. The water is sourced from a natural spring in the UNESCO nature reserve, The Cradle of Human Kind in Gauteng Province, South Africa. Aquamine has been producing small amounts of premium bottled water from its natural spring for the Gauteng and Johannesburg market since 1988.

The Aquamine brand has established a strong reputation for being an exceptional, quality, water and has had excellent reviews in competitive taste comparisons with international waters, winning a place in the top three natural spring waters globally.

Lonrho Springs is a wholly owned subsidiary of Lonrho Springs BVI, the Lonrho Plc holding company for its water interests, which is operating and developing water bottling projects in Africa.

Lonrho Springs will acquire the exclusive rights to the Aquamine brand, the water source and a lease on the land for a payment of approximately £70,000.

The project will cost US$ 5.3 million and take twelve months to complete. Lonrho Springs BVI will invest US$ 2.0 million over the twelve month period, with the balance of the funding coming via project finance from South African banks. Lonrho Springs will build a new international standard processing unit and state of the art water bottling plant to produce up to 800,000 litres per month.

Mr Gunnar Shillings, the founder of Aquamine, will remain with the company.

The quality of the Aquamine natural spring water is such that the company will focus its distribution on restaurants and COS (consume on site ) customers such as high net worth individuals, corporate accounts and hotels. The product will be distributed in environmentally friendly, returnable glass bottles.

The Gauteng / Johannesburg market is responsible for over 50% of South Africa's bottled water consumption, and it is believed that the quality of the water combined with Aquamine's presence and reputation in the market since 1988 are a strong basis on which the company can take a significant share in this premium market in the region.

David Lenigas, Executive Chairman of Lonrho stated:

"This water is one of the finest available anywhere, with a perfect balance of ph and minerals. It is sourced from a natural spring in the UNESCO world heritage site the 'Cradle of Humankind' which is a protected and beautiful environment.

The water is bottled in eco-friendly recyclable glass bottles. Aquamine will be a significant addition to the rapidly expanding Lonrho Springs water business and the quality of this natural spring water will ensure that it will become the flagship water of the Lonrho range."

ENQUIRIES

  • Lonrho Plc +44 (0)20 7016 5105
  • David Lenigas, Executive Chairman +44 (0)7881 825 378
  • Geoffrey White, Chief Executive Officer +44 (0)7717 307 308
  • Emma Priestley, Executive Director +44 (0)7867 785 177
  • Pelham PR Charles Vivian +44 (0) 20 7743 6672, +44 (0) 7977 297903
  • Alisdair Haythornthwaite +44 (0) 20 7743 6676, +44 (0) 7714 721379
  • Collins Stewart Europe: NOMAD to Lonrho Hugh Field / Jonny Sloan +44 (0) 20 7523 8350

NOTES TO EDITORS

About LONRHO:

Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughout Africa. The Company is listed on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure, transportation, support services and natural resources. The Company has over 20,000 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.

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
  • Celsys Limited – www.celsys.co.zw
  • Kwikbuild – www.kwikbuild.co.za
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