Lonrho (AIM: LONR) is pleased to announce that it has acquired 51% of KwikBuild Corporation Limited (“KwikBuild”), providers of innovative cost-efficient building solutions, for £2.1m of which £1m has been injected as working capital into the business. This acquisition is in line with Lonrho’s strategy for investment in infrastructure in Africa.
KwikBuild uses lightweight building products for rapid and in-expensive construction and has completed projects in South Africa, Angola, Zambia and Mozambique. The existing production is located in Johannesburg, South Africa with a further plant being established in Port Elizabeth, South Africa.
All KwikBuild structures can be erected on any terrain by semi-skilled labour using a dry building process without the need for costly steel or wooden frames. The building materials are weatherproof, fire resistant and provide good insulation.
Lonrho’s acquisition of KwikBuild allows for the immediate expansion of KwikBuild’s successful South African business model, and KwikBuild will be able to capitalise on Lonrho’s African network to access to new markets.
To date, KwikBuild has focussed on large-scale public sector projects. In South Africa, these include providing social housing to the Ministry of Housing; schools to the Ministry of Education, accommodating over 5,000 children; and medical clinics and laboratories for the Department of Health. Similar projects have been completed in Angola, Zambia and Mozambique.
KwikBuild structures are also being used by a leading telecom provider in South Africa, which required buildings to operate and manage their GSM cellular network. Leading mining companies have also used the Kwikbuild structures for their offices and accommodation.
In South Africa, there is immediate demand for 4 million low-cost homes. Presently, KwikBuild is negotiating with local authorities for the re-development of shanty towns.
David Lenigas, Executive Chairman of Lonrho Plc, commented:
“We expect significant uptake of KwikBuild systems across Africa in public works projects for housing, schools, hospitals and government offices. The acquisition of KwikBuild by Lonrho is an essential part of our longer-term strategy to invest in responsible African infrastructure growth.”
ENQUIRIES
- Lonrho Plc Geoff White, Chief Executive +44 (0) 20 7016 5105
- Emma Priestley, Executive Director
- Pelham PR Candice Sgroi +44 (0) 20 7743 6376, +44 (0) 7894 462 114
- Alisdair Haythornthwaite +44 (0) 20 7743 6676, +44 (0) 7714 721379
- Collins Stewart Europe Hugh Field +44 (0) 20 7523 8350 Jonny Sloan
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 (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 – www.saliners.com
- Bytes & Pieces – www.bytesandpieces.com
- Celsys Limited – www.celsys.co.zw
KWIKBUILD CONSTRUCTION SYSTEMS
KwikBuild provides quality easy to handle interlocking panels to build structures for homes, offices, commercial premises and hotels. The buildings use 90% less quarried materials than conventional build structures. The KwikBuild factory can currently produce up to 10,000 single bedroom units per annum, these houses are fully weather proof and have good insulation. They can be erected in a day on a pre-laid concrete base and can be customised to the clients’ requirements.
