LONRHO AFRICA PLC
DISPOSAL OF TIMBER OPERATIONS
Lonrho Africa Plc announces that it has completed the disposal of Lonrho
Africa Timber BV ("LATBV") to Brotherhood Holdings Limited for a cash
consideration of US$5 million.
LATBV is the holding company for Lonrho Africa's timber operations,
principally based in Zimbabwe, which produced a pre-tax loss of GBP7 million
(after impairment provisions) in the year to 30 September 2000. At that
date, the net asset value of the timber operations was approximately GBP5.2
million. As a result of recent events in Zimbabwe and the market devaluation
of the Zimbabwe dollar, the net asset value had reduced significantly by 31
March 2001. As a cautionary step, the Zimbabwean assets were fully impaired.
The proceeds of the sale will be used to reduce Lonrho Africa's net debt,
which amounted to GBP16 million at 31 March 2001.
The table below sets out the pro forma effects of the disposal of LATBV on
Lonrho Africa's earnings per ordinary share for the year ended 30 September
2000 and attributable net asset value per ordinary share as at 30 September
2000.
Per Lonrho Africa Audited Pro forma (Decrease) /
Ordinary Share Before After Increase
(pence) (pence)
Earnings (36.4) (32.0) 4.4
Net Attributable 36.2 35.1 (1.1)
Asset Value
Bernard Asher, Chairman of Lonrho Africa, said:
"This disposal takes us nearer towards eliminating group indebtedness. It
is not easy in present economic circumstances to dispose of businesses,
however the programme continues."
-Ends-
For further information please contact:
Nadja Vetter, Cardew & Co. T: 020 7930 0777
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