| Mon 9 Jan 2012, 9:00 | | LAF - Lonrho Plc - Lonrho Plc expands its exclusive John Deere dealership |
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LAF
LOLAF
LAF - Lonrho Plc - Lonrho Plc expands its exclusive John Deere dealership
network in Africa adding Tanzania and South Sudan to its current operations
LONRHO PLC
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813
("Lonrho" or "the Company")
LONRHO PLC EXPANDS ITS EXCLUSIVE JOHN DEERE DEALERSHIP NETWORK IN AFRICA
ADDING TANZANIA AND SOUTH SUDAN TO ITS CURRENT OPERATIONS
Lonrho is pleased to announce that it has completed a share purchase
agreement to acquire 100% of Lonagro Tanzania Limited and has also entered
into a Memorandum of Understanding directly with John Deere to become the
exclusive John Deere dealership in South Sudan.
Lonrho is already the exclusive John Deere dealer for Mozambique and Angola,
where it has seen strong demand for John Deere products as the mechanised
farming market expands across Africa.
Lonagro Tanzania is based in Dar es Salaam, the capital of Tanzania, and has
the exclusive John Deere dealership for Tanzania. Tanzanian growth is
expected to outperform both sub-Saharan Africa and global growth rates over
the coming years with agriculture contributing 45% of GDP.
The market for agricultural equipment in Tanzania is already substantial and
is set to increase rapidly as the Tanzanian Government is giving significant
attention to the agriculture sector through the Southern Agricultural Growth
Corridor of Tanzania (SAGCOT), a public-private partnership that aims to
stimulate commercial scale agricultural productivity in Tanzania.
The consideration for the acquisition of Lonagro Tanzania is USD 1.4 million
(GBP0.9m), funded from the Company`s existing cash resources.
Lonrho is further pleased to announce that it has also entered into a
Memorandum of Understanding directly with John Deere to become the exclusive
John Deere dealership in South Sudan with a view to beginning operations in
the second quarter of 2012.
South Sudan has a vast natural resource base and huge agricultural
potential, with more than 90% of the land being suitable for farming.
Significant foreign direct investment and international donor funding is
forecast to support large scale agricultural development following the
independence of South Sudan.
David Lenigas, Lonrho`s Executive Chairman commented:
"The expansion of Lonrho`s exclusive John Deere dealerships, adding Tanzania
and South Sudan, builds on the Company`s excellent relations with John Deere
and our continued aim to develop John Deere distribution in the agricultural
markets in Africa. The established Lonrho / John Deere dealerships in
Mozambique and Angola are demonstrating that the fully supported approach
offering comprehensive maintenance, training and spare part support, and not
just sales, delivers increased market share and long term growth for the
businesses."
Len Brand, Managing Director of John Deere (Pty) commented:
"John Deere are delighted to continue to work with Lonrho and further build
the cooperation and relationship between the companies. The strong working
relationship between John Deere and Lonrho benefits customers and
demonstrates our mutual commitment to Africa."
Enquiries
Lonrho Plc +44 (0) 20 7016 5105
David Lenigas
Geoffrey White
David Armstrong
Pelham Bell Pottinger +44 (0) 20 7861 3232
Gavin Davis
Charles Goodwin
Charlie Harrison
9 January 2012
South African sponsor
Java Capital
Date: 09/01/2012 09:00:01 Produced by the JSE SENS Department.
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