| Wed 4 Apr 2007, 8:48 | | LAF - Lonrho Africa Plc - Acquires african water b |
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LAF
LOLAF
LAF - Lonrho Africa Plc - Acquires african water bottling company & launches
Lonrho springs
Lonrho Africa Plc
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho Africa" or "the Company")
ACQUIRES AFRICAN WATER BOTTLING COMPANY & LAUNCHES LONRHO SPRINGS
Lonrho is pleased to announce it is to acquire an additional 50% of Swissta
Holdings Limited ("Swissta"), taking the Company`s total holding to 100%, for
a cash consideration of US$752,500 to be paid in four installments over the
next 12 months.
Lonrho also intends to acquire 100% of Swissta Mozambique Lda, the subsidiary
of Swissta, for a cash consideration of US$315,550. Swissta intends to grow
into a leading water bottling company in Eastern and Southern Africa.
This provides Lonrho with invaluable access to the African bottled water
market. It is also part of the Lonrho`s broader strategy to become a pan
African company, focused on investing in growth businesses that will make a
difference to Africa by enhancing basic infrastructure to facilitate the
sustainable growth of the continent as a resources and business hub
Lonrho Springs
A new Lonrho division, Lonrho Springs, has been established, to apply the
Swissta model of water bottling plants across Africa. Lonrho Springs will
become the brand name for bottled water to further strengthen Lonrho`s profile
and increase brand recognition as Lonrho rebuilds its African investment
portfolio.
Lonrho Springs will be run by Lonrho CEO David Lenigas in conjunction with the
co-founders of Swissta, Michael Strehler and David Brunner. With their
extensive knowledge of the region, the industry and technology, Mr Strehler
and Mr Brunner will operate and expand the business throughout Africa with the
aim of capturing a significant portion of the African water bottling market.
Swissta
At present Swissta, has current investments in water-related businesses in
Mozambique and the Democratic Republic of Congo.
Swissta Mozambique Lda, a subsidiary of Swissta, has owned 30% of the water
bottling market in Maputo, Mozambique`s capital since April 2006. Swissta`s
water bottling plant currently produces approximately 250,000 litres per
month, and the equivalent of 6 million half litre bottles of water a year.
Swissta RDC SpRL, a company owned 21.4% by Swissta, is situated in the
Democratic Republic of Congo. It has been in production since June 2006 and
produces similar quantities and product ranges to the Mozambique plant .
Swissta Strategy
The Swissta plants operate to the highest international standards for bottled
water and water related products, targeting a gap in the market for high
quality water at affordable prices. To target the rapidly growing African
middle class, Swissta has also recently launched bagged ice and sugar-free
flavoured water as a healthy alternative to soft drinks.
David Lenigas, Lonrho`s Executive Chairman and Chief Executive, commented:
"The provision of affordable and quality drinking water is a key step towards
improving the health and well being of any population. Our ultimate objective
is to lower the dependency on expensive imported water which has negative
economic consequences. This acquisition is another example of Lonrho`s
strategy of investing in African infrastructure by strengthening local
industry to pave the way for future growth and new market opportunities."
4 April 2007
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 04/04/2007 08:48:29 Produced by the JSE SENS Department.
