16th Oct 2007 09:41
Lonrho PLC16 October 2007 16 October 2007 Lonrho Plc ("Lonrho" or "the Company") Lonrho Acquires 51% of KwikBuild Lonrho (AIM: LONR) is pleased to announce that it has acquired 51% of KwikBuildCorporation Limited ("KwikBuild"), providers of innovative cost-efficientbuilding solutions, for £2.1m of which £1m has been injected as working capitalinto the business. This acquisition is in line with Lonrho's strategy forinvestment in infrastructure in Africa. KwikBuild uses lightweight building products for rapid and in-expensiveconstruction and has completed projects in South Africa, Angola, Zambia andMozambique. The existing production is located in Johannesburg, South Africawith a further plant being established in Port Elizabeth, South Africa. All KwikBuild structures can be erected on any terrain by semi-skilled labourusing a dry building process without the need for costly steel or wooden frames.The building materials are weatherproof, fire resistant and provide goodinsulation. Lonrho's acquisition of KwikBuild allows for the immediate expansion ofKwikBuild's successful South African business model, and KwikBuild will be ableto capitalise on Lonrho's African network to access to new markets. To date, KwikBuild has focussed on large-scale public sector projects. In SouthAfrica, these include providing social housing to the Ministry of Housing;schools to the Ministry of Education, accommodating over 5,000 children; andmedical clinics and laboratories for the Department of Health. Similar projectshave been completed in Angola, Zambia and Mozambique. KwikBuild structures are also being used by a leading telecom provider in SouthAfrica, which required buildings to operate and manage their GSM cellularnetwork. Leading mining companies have also used the Kwikbuild structures fortheir offices and accommodation. In South Africa, there is immediate demand for 4 million low-cost homes.Presently, KwikBuild is negotiating with local authorities for there-development of shanty towns. David Lenigas, Executive Chairman of Lonrho Plc, commented: "We expect significant uptake of KwikBuild systems across Africa in public worksprojects for housing, schools, hospitals and government offices. Theacquisition of KwikBuild by Lonrho is an essential part of our longer-termstrategy to invest in responsible African infrastructure growth." ENQUIRIES Lonrho PlcGeoff White, Chief Executive +44 (0) 20 7016 5105Emma Priestley, Executive Director Pelham PRCandice Sgroi +44 (0) 20 7743 6376 +44 (0) 7894 462 114Alisdair Haythornthwaite +44 (0) 20 7743 6676 +44 (0) 7714 721379 Collins Stewart EuropeHugh Field +44 (0) 20 7523 8350Jonny Sloan NOTES TO EDITORS About LONRHO: Lonrho Plc is an expanding conglomerate that is rapidly growing a successfulbusiness throughout Africa. The Company is listed on the London AIM stockexchange (LONR). Lonrho is strategically focused on the development of businessopportunities in infrastructure, transportation, support services and naturalresources. The Company has over 20,000 shareholders and substantialinstitutional backing to support its mandate to build a profitable business thatplays 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) • Nare Diamonds - www.narediamonds.com • Luba Freeport - www.lubafreeport.com • Fly540 - www.fly540.com • Norse Air - www.norseair.co.za • Swissta Holdings - www.swissta.com • SA Independent Liner Services - www.saliners.com • Bytes & Pieces - www.bytesandpieces.com • Celsys Limited - www.celsys.co.zw KWIKBUILD CONSTRUCTION SYSTEMS KwikBuild provides quality easy to handle interlocking panels to buildstructures for homes, offices, commercial premises and hotels. The buildings use90% less quarried materials than conventional build structures. The KwikBuild factory can currently produce up to 10,000 single bedroom unitsper annum, these houses are fully weather proof and have good insulation. Theycan be erected in a day on a pre-laid concrete base and can be customised to theclients' requirements. --oo-- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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