24 April 2001
DISPOSALS
Lonrho Africa Plc announces that it has entered into agreements to dispose of
its interests in the Toyota Distributorships in Angola, East Africa, Malawi,
Zambia and Zimbabwe ("Toyota Distributorships") to Toyota Tsusho Corporation
("TTC") of Japan, subject to regulatory consents being received where
appropriate, for an overall consideration of approximately GBP1.235 million
(Yen 220 million) payable in full on completion. In addition, TTC is to repay
the indebtedness of the Toyota Distributorships outstanding to Lonrho Africa
group companies, totalling approximately GBP315,000, within 90 days of the date
of completion.
TTC will also procure the release of Lonrho Africa group companies from any
guarantees given in respect of obligations of the Toyota Distributorships.
The Toyota Distributorships are primarily engaged in the importing,
distributing, selling and servicing of motor vehicles in their respective
territories.
The Toyota Distributorships, based on a pro forma consolidation of the audited
accounts for the year ended 30 September 2000, contributed a pre-tax loss of
GBP2.4 million to Lonrho Africa's results. At that date, the pro forma
consolidated net asset value of the Toyota Distributorships was approximately
GBP1.3 million. The proceeds of the sale will be used to reduce Lonrho Africa
net debt, which amounted to GBP16.3 million at the end of February 2001
including GBP0.5 million of debt which will be assumed by TTC.
The table below sets out the pro forma effects of the disposal of the Toyota
Distributorships on Lonrho Africa's earnings per ordinary share for the year
ended 30 September 2000 and net asset value as at 30 September 2000 per
ordinary share.
Per Lonrho Africa Audited Before Pro forma After (Decrease)/
Ordinary Share (pence) (pence) Increase
Earnings -36.4 -34.7 1.7
Net Attributable Asset Value 36.2 36.2 0
This disposal constitutes a related party transaction under 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 to be fair and
reasonable insofar as ordinary shareholders in Lonrho Africa are concerned.
Keith Atkinson, Chief Executive of Lonrho Africa commented:
"We indicated to shareholders when announcing our preliminary results in
February 2001 that in order to tackle the challenging trading conditions in
Africa, we would widen the scope and accelerate the timing of our disposal
programme. The disposal of our interests in the Toyota Distributorships
represents another step towards the Group's objective of reducing group
indebtedness."
-Ends-
For further information, please contact:
Nadja Vetter, Cardew & Co. T: 020 7930 0777
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