| Thu 8 Apr 2010, 14:38 | | 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
8th April 2010
Lonrho Plc (AIM : LONR) is delighted to announce that it has today completed the
acquisition of 100% of the John Deere and Komatsu dealerships for Mozambique.
The transaction was completed on the same terms as announced when formal Heads
of Agreement were signed on the 18th February 2010. The full text of the
announcement of that date is set out below:
Text of announcement of 18 February 2010
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 USD 9.9 million in the year to December 2008 with a gross
profit of USD 1.4 million. Net assets at that date were USD 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 USD 2.0 million payable on
completion, and a further USD 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 Officer +44 (0)20 7016 5105
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
South African Sponsor
Java Capital (Proprietary) Limited
Date: 08/04/2010 14:38:01 Produced by the JSE SENS Department.
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