12th May 2005 07:00
Lonrho Africa PLC12 May 2005 For immediate release 12 May 2005 Lonrho Africa Plc Disposal of Lonrho Hotels Kenya BV Lonrho Africa Plc ("Lonrho Africa") is today pleased to announce that it hascompleted the disposal of the Group's 100 per cent. interest in Lonrho HotelsKenya BV ("LHKBV") to a subsidiary of Kingdom Hotels Investments ("KHI") for acash consideration of £17.05 million, of which £15.95 million will be payable oncompletion and the balance over the next 18 months subject to any necessaryadjustments for warranty claims and working capital. LHKBV is the owner of Lonrho Hotels Kenya Limited ("LHK") in Kenya which ownsThe Norfolk Hotel, The Mara Safari Club, 75 per cent. of the Mount Kenya SafariClub, and 59.67 per cent. of The Aberdare Country Club and The Ark. LHK made a pre-tax profit of £0.2 million in the year ended 30 September 2004and at that date, the net asset value of LHK was approximately £12.3 million. The net proceeds of sale will result in the Group's cash surplus increasing toapproximately £19 million. The Board of Lonrho Africa continues to follow itsstrategy of disposing of its residual businesses and assets in Africa, includingits interest in the Hotel Cardoso SARL in Mozambique. It is the Board's currentintention to return the majority of the cash surplus resulting from its disposalprogramme to shareholders, whilst evaluating further opportunities to maximiseshareholder value. KHI is based in Riyadh, Saudi Arabia and is a Hospitality Investment PrivateCompany sponsored by HRH Prince Alwaleed bin Talal bin Abdulaziz Al Saud. -Ends- For further information, please contact: Nadja Vetter / Emma Consett T: 020 7930 0777 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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