13th May 2008 10:00
13 May 2008
LONRHO PLC
("Lonrho" or the "Company")
Lonrho acquires 100% South African Building Fabrication Company based in Cape Town.
Lonrho Plc (AIM: LONR), the conglomerate with a structured portfolio of African investments, is pleased to announce that it has signed an agreement to acquire a 100 per cent stake in leading prefabricated building company Arnott Panels (Pty) Ltd which trades as Cool Maintenance.
Cool Maintenance specialises in the manufacture and erection of cold storage units for the food processing, storage and other industries. Cool Maintenance was established in 1992 and operates from a factory in Cape Town.
In 1995 Cool Maintenance expanded its activities to manufacture and install thermally insulated panels used to house electronic equipment. It has become a major supplier of base station housings to the cellular networks as they roll out transmission masts across Africa clients that include MTN, Vodacom and Zok Cellular.
In addition Cool Maintenance manufactures insulated panels for use in modular housing, clinics, offices and classrooms. Cool Maintenance is a major supplier to e-Kwikbuild, a Lonrho company that is a major supplier of modular building solutions to Governments, mining companies and private clients throughout southern Africa (www.e-kwikbuild.co.za).
The Acquisition
Cool Maintenance's accounts for the year ended 28 February 2007 reported a turnover of US$ 7.1 million and total assets of US$ 3.5 million and a PBT of US$ 921,000. Management accounts for the year to end February 2008 show turnover of US$ 7.4 million and PBT of US$ 910,000.
Under the agreement to purchase a 100% stake of Cool Maintenance, Lonrho will initially acquire a 51% stake for a payment of ZAR 12.75 million. Lonrho will, over the next two years, acquire the remaining 49% in two equal tranches. The basic total purchase price is thus ZAR 25 million and equates to approximately USD$3.1 million. However, the two further payments are linked to the audited PBT performance of Cool Maintenance in the financial years ending 28 February 2009 and 2010. Each payment will be ZAR 6.125 million plus interest accrued for the period should Cool Maintenance achieve a minimum PBT of ZAR 6 million in each year. Should Cool Maintenance not achieve the minimum warranted PBT in each year, then the year two and three purchase prices will be reduced by ZAR 3 for every ZAR 1 shortfall in warranted profits.
David Lenigas, Lonrho's Executive Chairman commented:
"The acquisition of Cool Maintenance complements our investment in Kwikbuild by adding manufacturing capacity to Kwikbuild to deliver building solutions in Africa.
This acquisition will, in conjuction with e-Kwikbuilds soon to be commissioned new panel manufacturing plant in Port Elizabeth, provide the necessary manufacturing capacity to fulfil the Lonrho Group's expanding order book for classrooms, mining and construction buildings, and factories.
The modular supply of base station housings to the cellular companies is a rapidly expanding market, and we plan to increase Cool Maintenance's capacity to take an even larger share of this pan African market."
LONRHO ENQUIRIES
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Lonrho Plc |
+44 (0)20 7016 5105 |
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David Lenigas, Executive Chairman |
+44 (0)7881 825 378 |
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Geoffrey White, Chief Executive Officer |
+44 (0)7717 307 308 |
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Emma de Borchgrave, Executive Director |
+44 (0)7867 785 177 |
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Pelham PR |
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Charles Vivian |
+44 (0) 20 7743 6672 |
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+44 (0) 7977 297903 |
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James MacFarlane |
+44 (0) 20 7743 6375 |
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+44 (0) 7841 672831 |
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Collins Stewart Europe : NOMAD to Lonrho |
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Hugh Field / Simon Alston |
+44 (0) 20 7523 8350 |
NOTES TO EDITORS
About LONRHO:
Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughout Africa. The Company's shares are traded on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure, transportation, support services, hotels and natural resources. The Company has over 19,000 shareholders and substantial institutional backing to support its mandate to build a profitable business that plays a fundamental role in the development of the African economy.
Since 2006, the Company has invested in or acquired control of:
Hotel Cardoso - www.hotelcardoso.co.mz (retained)
Lonrho Mining - www.lonrhomining.com
Luba Freeport - www.lubafreeport.com
Fly540 - www.fly540.com
Swissta Holdings - www.swissta.com
SA Independent Liner Services - www.saliners.com
Bytes and Pieces www.bytespieces.com
Kwikbuild - www.e-kwikbuild.co.za
LonZim - www.lonzim.co.uk
Related Shares:
Lonrho