| Wed 14 Jan 2009, 16:41 | | LAF - Lonrho Plc - Lonrho appointed John Deere distributor for Angola |
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LAF
LOLAF
LAF - Lonrho Plc - Lonrho appointed John Deere distributor for Angola
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 appointed John Deere distributor for Angola"
14th January 2009
Lonrho Plc (AIM: LONR), the conglomerate with a structured portfolio of African
investments, is pleased to announce that it`s wholly owned agricultural
subsidiary, Lonrho Agriculture, has signed an agreement to become the John Deere
tractor and agricultural equipment distributor for Angola.
A new Angolan company, LonAgro Equipamentos Agricolas Lda (LonAgro) has been
established and will be owned as to 51% Lonrho Agriculture and 49% as to
Agromundo Assessoria Agricola Lda, a well established company in the Angolan
agricultural sector (that represents international companies such as Omnia from
South Africa; BASF Agrochemicals from Germany and Bauer Irrigation from Austria)
a well established company in the Angola agricultural sector.
John Deere is the world`s leading supplier of agricultural equipment with an
annual turnover of over US$ 2 billion and is renowned for its dealer network and
the support, back up and training that this brings.
LonAgro has purchased a 20,000m2 site to be the initial John Deere branch in
Catete, in the Bengo Province, 80km east of Luanda and plans to have this head
office branch open and stocked by July 2009. At least two further branches are
planned to be developed throughout the country in 2010 and 2011. Each branch
will have full showroom, sales, administration, training and servicing
facilities.
The Angolan Government has announced that the development of agricultural
projects is a national priority and GESTERRA (Gestao de Terras Aravais), a
parastatal Government Agricultural Promotion agency and the Ministry of
Agriculture, through the Instituto de Desenvolvimento Agricola (IDA) are
implementing a series of investment packages to encourage and support Angolan
agriculture.
The budgeted investment to establish and roll out the John Deere dealership in
Angola is US$ 6 million, which will be funded by way of local Angolan bank debt
and equity. Lonrho will fund up to US$ 1.5 million of the equity from its
existing cash resources which had been allocated as previously announced to
agricultural projects.
David Lenigas, Lonrho`s Executive Chairman commented:
"Angola is a thriving economy in Africa and the quantity of large scale private
sector investment into the agricultural sector and the biofuels sector, combined
with the Governments clear mandate to develop the agricultural economy, provides
strong commercial potential for LonAgro.
"John Deere is not only the leading world supplier of agricultural equipment,
but importantly, is as focused as Lonrho on ensuring that the business we build
provides the correct levels of technical support, training and spares
availability to ensure that John Deere develops into the strongest partner in
the agricultural sector in Angola."
LONRHO 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 de Borchgrave, 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 +44 (0) 20 7523 8350
South African sponsor to Lonrho Plc
Java Capital (Proprietary) Limited
Date: 14/01/2009 16:41:01 Produced by the JSE SENS Department.
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