| Fri 20 Apr 2007, 7:49 | | LAF - Lonrho Africa Plc - Acquires interest in Moz |
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LAF
LOLAF
LAF - Lonrho Africa Plc - Acquires interest in Mozambique`s largest mineral
water company
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 INTEREST IN MOZAMBIQUE`S LARGEST MINERAL WATER COMPANY
Lonrho is pleased to announce that it has signed an agreement to acquire a 34%
interest in the shares of Sociedade de Aguas de Mocambique, Lda ("Aguas de
Mocambique") for US$1.211m. It is intended to increase this holding to over 50%
by buying out minority shareholders in the future.
Aguas de Mocambique is an extractor, bottler and distributor of mineral water,
whose principal brand, Agua de Namaacha, currently has an overall share of
approximately 30% in the Mozambique water market.
Water sales for Aguas de Mocambique for 2006 represented approximately 2,000,000
litres, with a sales value of US$1.045m. Aguas de Mocambique has achieved year
on year growth of approximately 100% per annum between 2003 and 2005 and in 2007
water sales are expected to be in the region of 3,000,000 litres.
Aguas de Mocambique has recently invested US$1.2m in a new bottling plant and
factory, which includes storage space for up to 200,000 litres of water and has
the capacity to extract 100,000 litres of water per day.
The factory is based on 560 Ha of land, which has 4 known springs, and there is
capacity for further exploitation of the land for leisure developments. It is
located close to the main market, with Maputo located less than 100km from the
factory.
This further expands Lonrho`s position in the African bottled water market,
following the acquisition of Swissta Water and launch of Lonrho Springs. The
acquisition offers clear synergies with the Company`s existing water interests,
including utilising Swissta Water`s management and technical expertise and
taking advantage of Aguas de Mocambique`s established distribution network.
Lonrho believes that further growth of the Agua de Namaacha brand can be
achieved through increased marketing efforts and expansion into Central
Mozambique and export opportunities to surrounding countries.
This acquisition represents another step in 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.
David Lenigas, Lonrho`s Executive Chairman and Chief Executive, commented:
"Lonrho has acquired an interest in a rapidly growing and well known brand of
water with existing cash flows and infrastructure, an established distribution
network, and further organic growth prospects both in Mozambique and the export
market.
This acquisition represents an important development for Lonrho`s water
businesses, offering clear synergies with Swissta Water and Lonrho Springs."
20th APRIL 2007
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 20/04/2007 07:49:01 Produced by the JSE SENS Department.
