| Wed 1 Nov 2006, 15:00 | | Lonrho Africa - Lonrho invests in Norse Air Limite |
|
LAF
LOLAF
Lonrho Africa - Lonrho invests in Norse Air Limited
Lonrho Africa Plc
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho Africa" or "the Company")
LONRHO INVESTS IN NORSE AIR LIMITED
Lonrho is pleased to announce that it has agreed to subscribe for 43 per
cent. of the issued ordinary share capital of Norse Air Limited ("Norse
Air" or "the Company") for a total cash consideration of US$6 million.
Norse Air is a well-established private aviation business whose
activities include Charter and freight services, Leasing, Sales and
Maintenance. Its operations are based primarily in Mauritius and South
Africa and also extend to Afghanistan, Ivory Coast, Central African
Republic, Madagascar, Mozambique and Singapore. The agreement is
conditional, inter alia, upon approval from the South African Reserve
Bank and the Company"s bankers.
For the ten months ended 31 December 2005, the Norse Air Group generated
revenues of approximately R91.8 million, a pre tax profit of
approximately R26.2 million and as at 31 December 2005 had total assets
of R131 million. For information purposes, the current GBP/Rand exchange
rate is approximately 14.18.
As part of its investment, Lonrho is entitled to nominate the Non-
Executive Chairman of Norse Air. Norse Air"s CEO, David Avnit, and
Managing Director, Nadja Avnit, who have a combined industry experience
of 12 years, will continue to run the business.
Lonrho"s investment will facilitate Norse Air"s geographic expansion, in
both its Charter and Leasing operations, as well as funding the
acquisition of additional aircraft, resources and infrastructure
facilities.
Commenting on the acquisition, David Lenigas, Joint Executive Chairman
and Chief Executive of Lonrho said:
"There is an increasing demand for reliable cargo and passenger air
travel across the African continent, as well as from Africa to other
global destinations. We are delighted to have this opportunity to invest
in Norse Air, a company with a proven operating and financial track
record, which fits well with our existing investment portfolio."
Norse Air Leasing offers a global on-site service providing aircraft,
crew and maintenance. Norse Air has a number of aircraft based in various
parts of Africa and in the East, including, Ivory Coast, Gabon,
Madagascar, Mozambique, Central African Republic, Ghana, Singapore and
Afghanistan. The Company has successfully operated aircraft for the World
Food Programme, the International Red Cross, the United Nations and other
Non-Governmental Organisations and international businesses, often under
hostile environmental conditions. Norse Air provides aircraft such as
King Airs, Beechcrafts, SAABs and Learjets.
Norse Air Charter is focused on the provision of passenger and cargo
charter services both within and to Africa. Norse Air"s extensive network
of contacts, and its ability to leverage long-standing relationships with
both Governmental and Non-Governmental Organisations, enables it to
successfully manage flights into inhospitable areas with little
infrastructure as well as to deal with militant activity.
In Southern Africa, Norse Air is widely recognised as the leading expert
in deploying specifically Russian cargo aircraft to move outsized cargo
such as mining and telecommunications equipment, as well as hazardous
equipment for the South African Government and wild game. Although
offering broad-based passenger services, Norse Air specialises in
passenger charter flights primarily for Governmental units in the service
of South African and African Union peacekeeping initiatives in Africa.
The aircraft utilised for such passenger flights include MD 83s, DC9s and
Boeing type aircraft with an emphasis placed on safety and security, and
the provision of highly professional and flexible services. Norse Air
Charter holds an A1, N1 and N4 category license issued by the South
African Civil Aviation Authorities allowing the Company to operate any
category of aircraft anywhere in the world for operations commencing from
South Africa.
Norse Air Sales is an increasingly profitable business with a growing
client base. It has gained significant momentum over the past three years
with the recovery in the values of turbo prop and small jets generating
significant interest amongst investors, corporations and aircraft
operators in owning their own aircraft.
Norse Air Maintenance meets the demanding maintenance requirements of the
Group"s operations, utilising on site engineers in various developing
countries backed up by the Company"s main base at Rand Airport,
Johannesburg. The maintenance operation is licensed to service a number
of types of aircraft including SAAB, Embraer and Beechcraft, as well as
jets such as the Citation and the Learjet. Although its primary focus is
on maintaining the various aircraft owned by the Company, it also
maintains aircraft on behalf of third parties.
1 November 2006
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 01/11/2006 03:00:30 PM Produced by the JSE SENS Department
