| Tue 13 May 2008, 13:27 | | LAF - Lonrho Acquires 100% South African Building |
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LAF
LOLAF
LAF - Lonrho Acquires 100% South African Building Fabrication Company Based
In Cape Town.
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 acquires 100% South African Building Fabrication Company based in Cape
Town.
13 May 2008
Lonrho Plc (AIM: LONR), the conglomerate with a structured portfolio of African
investments, is pleased to announce that it has signed an agreement to acquire a
100 per cent stake in leading prefabricated building company Arnott Panels (Pty)
Ltd which trades as Cool Maintenance.
Cool Maintenance specialises in the manufacture and erection of cold storage
units for the food processing, storage and other industries. Cool Maintenance
was established in 1992 and operates from a factory in Cape Town.
In 1995 Cool Maintenance expanded its activities to manufacture and install
thermally insulated panels used to house electronic equipment. It has become a
major supplier of base station housings to the cellular networks as they roll
out transmission masts across Africa clients that include MTN, Vodacom and Zok
Cellular.
In addition Cool Maintenance manufactures insulated panels for use in modular
housing, clinics, offices and classrooms. Cool Maintenance is a major supplier
to e-Kwikbuild, a Lonrho company that is a major supplier of modular building
solutions to Governments, mining companies and private clients throughout
southern Africa (www.e-kwikbuild.co.za).
The Acquisition
Cool Maintenance`s accounts for the year ended 28 February 2007 reported a
turnover of US$ 7.1 million and total assets of US$ 3.5 million and a PBT of US$
921,000. Management accounts for the year to end February 2008 show turnover of
US$ 7.4 million and PBT of US$ 910,000.
Under the agreement to purchase a 100% stake of Cool Maintenance, Lonrho will
initially acquire a 51% stake for a payment of ZAR 12.75 million. Lonrho will,
over the next two years, acquire the remaining 49% in two equal tranches. The
basic total purchase price is thus ZAR 25 million and equates to approximately
USD$3.1 million. However, the two further payments are linked to the audited
PBT performance of Cool Maintenance in the financial years ending 28 February
2009 and 2010. Each payment will be ZAR 6.125 million plus interest accrued for
the period should Cool Maintenance achieve a minimum PBT of ZAR 6 million in
each year. Should Cool Maintenance not achieve the minimum warranted PBT in each
year, then the year two and three purchase prices will be reduced by ZAR 3 for
every ZAR 1 shortfall in warranted profits.
David Lenigas, Lonrho`s Executive Chairman commented:
"The acquisition of Cool Maintenance complements our investment in Kwikbuild by
adding manufacturing capacity to Kwikbuild to deliver building solutions in
Africa.
This acquisition will, in conjuction with e-Kwikbuilds soon to be commissioned
new panel manufacturing plant in Port Elizabeth, provide the necessary
manufacturing capacity to fulfil the Lonrho Group`s expanding order book for
classrooms, mining and construction buildings, and factories.
The modular supply of base station housings to the cellular companies is a
rapidly expanding market, and we plan to increase Cool Maintenance`s capacity to
take an even larger share of this pan African market."
LONRHO ENQUIRIES
Lonrho Plc +44 (0)20 7016 5105
David Lenigas, Executive Chairman +44 (0)7881 825 378
Geoffrey White, Chief Executive +44 (0)7717 307 308
Officer
Emma de +44 (0)7867 785 177
Borchgrave, Executive Director
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 / Simon Alston +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`s shares are traded on the London AIM
stock exchange (LONR). Lonrho is strategically focused on the development of
business opportunities in infrastructure, transportation, support services,
hotels and natural resources. The Company has over 19,000 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)
Lonrho Mining - www.lonrhomining.com
Luba Freeport - www.lubafreeport.com
Fly540 - www.fly540.com
Swissta Holdings - www.swissta.com
SA Independent Liner Services - www.saliners.com
Bytes and Pieces www.bytespieces.com
Kwikbuild - www.e-kwikbuild.co.za
LonZim - www.lonzim.co.uk
South African sponsor to Lonrho Plc
Java Capital (Proprietary) Limited
Date: 13/05/2008 13:27:02 Produced by the JSE SENS Department.
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