28 February 2001
Lonrho Africa Plc announces that it has completed the disposal of John Holt and
Co. Liverpool Ltd, the holding company of its 50.6% shareholding in John Holt
Plc to a consortium of management consisting of Paul Newns, Director of John
Holt Group Ltd and John Holt Plc, James Mclardy, Director of John Holt Plc and
Chris Ezeh, Director of John Holt Plc for a consideration of $1.6 million, $1.1
million payable on completion and $0.5 million in July 2003. John Holt Plc made
a pre-tax profit for the year to 30 September 2000 of GBP319,000. Lonrho
Africa's share of the net assets of the business as at 30 September 2000
amounted to GBP1.1m. Proceeds from the sale will be used to reduce net debt.
Lonrho Africa's current net debt is GBP26 million and Nigerian bank debt, which
totalled GBP10 million at 31 December 2000, will transfer with the disposal.
Trade finance provided to John Holt Plc by Lonrho Africa, currently amounting
to GBP5.7 million will be repaid over the next 24 months.
John Holt Plc, quoted on the Nigerian Stock Exchange, is one of the oldest
established trading companies in Nigeria having been in operation for over 100
years. Its principal operations consist of the provision of goods and services
to the oil and corporate sectors and the wholesale distribution of consumer
products from a wide range of local and international manufacturers.
Given the interests of the management of John Holt Plc in the transaction this
disposal constitutes a related party transaction under the AIM rules. The
Directors of Lonrho Africa consider, having consulted with HSBC Investment Bank
plc the Company's nominated adviser, the terms of the disposal are fair and
reasonable insofar as the holders of the ordinary shares of Lonrho Africa are
concerned.
Keith Atkinson, Chief Executive, said:
"The disposal of our shareholding in John Holt Plc is another step towards the
Group's objective to complete its disposal programme and to reduce group
indebtedness."
It is the intention of the Directors of Lonrho Africa to continue with the
disposal programme until net debt is eliminated.
-Ends-
For further information, please contact:
Jon Simmons / Nadja Vetter, Cardew & Co. T: 020 7930 0777
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
