| Thu 18 Feb 2010, 9:00 | | LAF - Lonrho Plc - Agricultural division acquires the John Deere and Komatsu |
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LAF
LOLAF
LAF - Lonrho Plc - Agricultural division acquires the John Deere and Komatsu
dealerships for Mozambique
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 Plc agricultural division acquires the John Deere and Komatsu
dealerships for Mozambique
Lonrho Plc (AIM : LONR) is delighted to announce that it has signed a formal
Heads of Agreement to acquire 100% of Trak-Auto Lda, (Trak-Auto) the existing
holder of the John Deere and Komatsu dealerships in Mozambique. John Deere is
a leading supplier of agricultural equipment and Komatsu is one of the world`s
largest manufacturers of construction, mining and utility equipment.
Trak-Auto sales were US$ 9.9 million in the year to December 2008 with a gross
profit of US$ 1.4 million. Net assets at that date were US$ 0.6 million.
Lonrho is looking to build revenues and profit substantially over the coming
years. The Mozambique market for agricultural, construction and mining
equipment is growing due to the number of industrial scale agricultural, bio-
fuel and large coal and mineral projects that are currently being developed
across the country.
Trak-Auto, a local Mozambique company, holds the exclusive licences for both
John Deere and Komatsu products in Mozambique and sold 104 John Deere units
and 13 Komatsu units in 2009. It services customer`s requirements from its
branches in Maputo, Pemba and Beira and via an agent in Tete.
The acquisition price for 100% of Trak-Auto is US$ 2.0 million payable on
completion, and a further US$ 1.0 million per year for the following three
years subject to the business meeting agreed growth targets in relation to
sales and profits. The existing management will remain with the business.
Lonrho will arrange working capital for the business to ensure that it can
fund the growth that is forecast.
David Lenigas, Lonrho`s Executive Chairman stated:
With the combination of Lonrho`s local expertise and John Deere and Komatsu`s
excellent product ranges and professional approach to markets we expect to see
strong growth for both brands in Mozambique. I feel sure that the commitment
by all parties to provide the highest quality of support, service and training
for the products delivered will build brand loyalty and market share.
Lonrho already has a number of current businesses in Mozambique ranging from
the best hotel to the largest IT company, together with its agricultural
interests. Mozambique is rapidly developing into a strong African economy and
is a good place to do business. The country has some really significant new
projects being developed.
Enquiries
Lonrho Plc
David Lenigas, Executive Chairman +44 (0)20 7016 5105
Geoffrey White, Chief Executive +44 (0)20 7016 5105
Officer
David Armstrong, Finance Director +44 (0)20 7016 5105
Pelham Bell Pottinger
Charles Vivian +44 (0) 20 7337
1538
+44 (0) 7977 297903
James MacFarlane +44 (0) 20 7337
1527
+44 (0) 7841 672831
Klara Kaczmarek +44 (0) 207337 1524
+44 (0) 7912 539
973
Beaumont Cornish Limited (Nomad)
Rosalind Hill Abrahams +44 (0) 20 7628
3396
Roland Cornish +44 (0) 20 7628
3396
18 February 2010
South African Sponsor
Java Capital (Proprietary) Limited
Date: 18/02/2010 09:00:04 Produced by the JSE SENS Department.
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