| Tue 4 Oct 2011, 8:00 | | LAF - Lonrho Plc - Lonrho completes acquisition of ATdM in Mozambique |
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LAF
LOLAF
LAF - Lonrho Plc - Lonrho completes acquisition of ATdM in 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 completes acquisition of ATdM in Mozambique
Lonrho is pleased to announce that it has completed a share purchase
agreement to acquire an 80% equity interest in Aldeamento Turistico de
Macuti SARL "ATdM". ATdM has a long lease for a 300,000 m2 development
site on the coast in Beira, Mozambique which historically housed the
popular Don Carlos and Estoril hotels.
Beira is Mozambique`s second largest city and is a major trade and
transit centre for exports and imports to and from Southern East Africa.
Economic activity in Beira is increasing as new large scale mineral,
biofuel and farming operations are being established in Mozambique that
will utilise the Beira port. Tourism to Mozambique is also developing
strongly. Beira currently lacks a quality international standard hotel,
retail centre and office park to meet the growing demand in the city.
The ATdM site is the prime location in Beira to meet the expected need
for hotels, business parks and retail malls. The site, located only 2km
from Beira Airport, is the largest single site for development in Beira
with uninterrupted access to the beach centred around and including the
famous Beira lighthouse.
As a first phase development Lonrho Hotels plan to refurbish an existing
property on the site to establish an easyHotel by Lonrho and provide
quality office space for key companies seeking to establish offices in
Beira.
The Company has acquired the 80% stake in ATdM from LonZim Plc for
USD5.1m (USD3.2m) which will be settled in cash over 5 years. Pursuant
to the share purchase agreement, Lonrho Hotels will also take
responsibility for liabilities of up to USD2.7m (GBP1.7m).
David Lenigas, Lonrho`s Executive Chairman commented:
"Mozambique is a rapidly developing economy being driven by significant
new oil and gas exploration, mining, tourism and agriculture projects.
Lonrho is already very active in Mozambique in the hotel, IT, and
agriculture sectors and sees the city of Beira as an important port
gateway that will benefit from the growing economy. This new development
site acquired by Lonrho is strategically placed as the prime costal
development location in the city and integral to meeting the growth in
demand in this region of Mozambique."
Enquiries
Lonrho Plc +44 (0) 20 7016 5105
David Lenigas
Geoffrey White
David Armstrong
Panmure Gordon +44 (0) 20 7459 3600
Tim Linacre
Dominic Morley
Adam Pollock
Hannah Woodley
Pelham Bell Pottinger +44 (0) 20 7861 3232
James MacFarlane
4 October 2011
South African sponsor
Java Capital
Date: 04/10/2011 08:00:10 Produced by the JSE SENS Department.
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