| Fri 21 Sep 2007, 10:49 | | LAF - Lonrho Plc - To Acquire 51% Stake and Contro |
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LAF
LOLAF
LAF - Lonrho Plc - To Acquire 51% Stake and Control of African Microfinance Bank
Lonrho Plc
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho" or "the Company")
LONRHO TO ACQUIRE 51% STAKE AND CONTROL OF AFRICAN MICROFINANCE BANK
Lonrho (AIM : LONR), the conglomerate with a structured portfolio of African
investments, is pleased to announce that it has signed a Letter of Intent and a
formal Term Sheet to acquire 51% and Board control of the Mozambiquan
Microfinance Bank `Socremo - Banco de Microfinancas`.
Lonrho will take equity and Board control of the Bank and has agreed to buy out
a series of smaller shareholders to restructure the bank. Under the new
structure, Lonrho will own 51% of the Bank with other shareholders being AfriCap
Microfinance Fund (www.africapfund.com) 21%, GAPI 11%, and Nordic MicroCap
(www.microcap.se) 10% with the remaining equity being held in Treasury.
Socremo has developed significantly since it was founded in 1999. The
Microfinance market has matured from NGO based to the formal banking sector.
Socremo has progressed into a structured and formal financial institution that
provides a growing range of financial products to this market sector and
supports expanding SME`s (Small and Medium Enterprises).
Socremo is Mozambique`s second largest Microfinance bank with 30,000 customers
serviced through eight branches. The bank employs 223 people and has a strong
and quality management structure in place. The number of accounts at the bank
has grown 160% and the bank`s credit portfolio has grown 103% during the past
year.
The transaction is subject to Reserve Bank of Mozambique approval.
David Lenigas, Chairman and CEO of Lonrho commented:
"The services provided by Microfinance Banks are an essential building block in
the support of sustainable economic and social development in Africa. We see
this market as one of the most fundamental opportunities for Lonrho to partake
in creating stable and viable economies throughout the Continent. Micro loans,
savings and insurance can transform the lives of people in developing countries
who want a chance to work their way out of poverty. Socremo is a successful and
reliable institution and Lonrho will utilise Socremo`s experience and knowledge
as a base to expand this microfinance model into other countries."
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
21 September 2007
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
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