Lonrho, the conglomerate with a structured portfolio of African investments, is pleased to announce that it has completed the acquisition of an 80% stake in Blueberry International Services Limited (“Blueberry”), an offshore company incorporated in the BVI, for US$5.45 million in cash. The acquisition provides a strategic position in two established Zimbabwean industries.
Blueberry controls 60% of Celsys Limited (“Celsys”), a Zimbabwean publicly listed company operating in the telecommunications sector; and 100% of Gardoserve (Private) Limited (“Gardoserve”), a Zimbabwean private industrial chemical manufacturer and distributor.
Celsys
Celsys was established in 1996 and listed on the Zimbabwe Stock Exchange in 2003. It comprises four core and interlinked divisions: Celsys Comms; Celsys Print; Celsys IT; and Celsys Marketing. The company is an important employer with over 140 staff and plays a significant role in maintaining and growing the Zimbabwean communications industry.
Its core business is information and communications technology (ICT). Celsys Comms comprises: The Comm Shop which sells and repairs cell phones and is the sole authorised Nokia Repair Centre in Zimbabwe; Celsys C-phone, a vibrant community payphone project established four years ago, and Zimbabwe’s dominant brand in the payphone market. With its superior airtime tracking software and fully automated operation, C-Phone has created viable livelihoods for rural, peri-urban and urban Zimbabweans, providing a critical communications service into Zimbabwe’s rural areas.
Celsys Print is Zimbabwe’s largest independent printer of cheque books and other security documents for banks and financial institutions, and is a major producer of cell phone recharge cards, recognised for its excellent quality and product delivery.
Celsys IT sells, operates and maintains ATMs and distributes Sophos IT security products across sub Saharan Africa. Sophos is the internationally recognised anti-virus, anti-spam and information technology security vendor, offering technology security for businesses in over 150 countries. Celsys IT last year acquired the operations of Hillside Technologies Southern Africa, an IT business providing software security to large businesses and banks, and with it, Sophos Master Distributor status.
Gardoserve
Gardoserve, trading as Millpal, has over 20 years experience selling chemicals to the textile and raw materials chemical industry. Millpal continues to manufacture and distribute chemicals, flavourants, and colourants in Zimbabwe and for export to the metal treatment, textile, electroplating, epoxy and solvent markets.
Lonrho’s acquisition of an interest in Celsys Ltd and Millpal represents its first investment into Zimbabwe following the announcement of LonZim PLC. LonZim is a separate and specific fund that Lonrho is establishing to build a portfolio of investments in Zimbabwe and neighbouring countries. The flotation of LonZim on AIM is planned for late October. The holding in Blueberry, and any other transactions meeting the investment criteria of Lonzim already completed by Lonrho, will be offered to LonZim at cost.
David Lenigas, the Chairman and CEO of Lonrho, Emma Priestley, Director of Lonrho and Geoffrey White, Chief Operating Officer of Lonrho, will be joining the Celsys and Millpal Boards. Extensive due diligence has been undertaken on the transaction by Lonrho and its professional advisors in Zimbabwe. Acting for Lonrho on the acquisition were accountants Ernst & Young and the Zimbabwean law firm, Winterton’s.
Commenting on inward investment into Zimbabwe, Lonrho’s Executive Chairman David Lenigas said:
"Lonrho believes that there is a significant opportunity to bring foreign direct investment to grow existing businesses in Zimbabwe. Now is the time to be establishing and supporting businesses that can develop. The economy has suffered from severe underinvestment.
“Lonrho is committed to investing throughout Africa to develop and support the growth of African business. We believe that cautious and well informed, long term investment in Zimbabwe will offer returns not only to Lonrho and Lonzim shareholders but also to Zimbabwean business and the Zimbabwean economy.”
ENQUIRIES
- Lonrho Plc +44 (0) 20 7016 5105
- David Lenigas, Chief Executive +44 (0)7881 825 378
- 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 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
- Bytes & Pieces
