Update on LonZim Plc

12 March 2008
Content from a Premium Partner
Lonrho (London)
press release

Lonrho Plc ("Lonrho" or "the Company") (AIM: LONR) the expanding conglomerate with a structured portfolio of African investments is pleased to provide an update on LonZim Plc ("LonZim").

LonZim (AIM: LZM) was admitted to trading on AIM on 11 December 2007 and was established for the principal purpose of making investments in Zimbabwe and the Beira corridor in Mozambique. Lonrho owns 20% of LonZim and provides management services to LonZim.

Paynet Limited

LonZim announced on 5 March 2008 that it has signed an agreement to acquire a 100 per cent shareholding in Paynet Limited, which in turn is the beneficiary of Lanuarna Trust Zimbabwe ("Lanuarna"). The consideration was US$3,187,000.

Included in the acquisition is the newly built, modern commercial property in Harare from which Paynet Zimbabwe operates, valued at US$1,025,000

Based on the Zimbabwe Dollar monthly earnings for Lanuarna for 2007, converted to US Dollar figures using the Old Mutual Implied Rate, the profit before tax for 2007, after removing non-realised exchange rate losses and non-recurring expenses, 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, Le Har. 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 to acquire 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 that controls 60 per cent. of Celsys Limited ( "Celsys" ), a Zimbabwean publicly listed 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 Stock Exchange.

Blueberry will change its name to LonZim Investments Limited.

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
  • James MacFarlane +44 (0) 20 7743 6375, +44 (0) 7841 672831
  • 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
  • Kwikbuild – www.kwikbuild.co.za
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