1st Nov 2006 09:51
Lonrho Africa PLC01 November 2006 LONRHO AFRICA PLC ("Lonrho") 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 "theCompany") for a total cash consideration of US$6 million. Norse Air is awell-established private aviation business whose activities include Charter andfreight services, Leasing, Sales and Maintenance. Its operations are basedprimarily in Mauritius and South Africa and also extend to Afghanistan, IvoryCoast, Central African Republic, Madagascar, Mozambique and Singapore. Theagreement is conditional, inter alia, upon approval from the South AfricanReserve Bank and the Company's bankers. For the ten months ended 31 December 2005, the Norse Air Group generatedrevenues of approximately R91.8 million, a pre tax profit of approximately R26.2million and as at 31 December 2005 had total assets of R131 million. Forinformation purposes, the current GBP/Rand exchange rate is approximately 14.18. As part of its investment, Lonrho is entitled to nominate the Non-ExecutiveChairman of Norse Air. Norse Air's CEO, David Avnit, and Managing Director,Nadja Avnit, who have a combined industry experience of 12 years, will continueto run the business. Lonrho's investment will facilitate Norse Air's geographic expansion, in bothits Charter and Leasing operations, as well as funding the acquisition ofadditional aircraft, resources and infrastructure facilities. Commenting on the acquisition, David Lenigas, Joint Executive Chairman and ChiefExecutive of Lonrho said: "There is an increasing demand for reliable cargo and passenger air travelacross the African continent, as well as from Africa to other globaldestinations. We are delighted to have this opportunity to invest in Norse Air,a company with a proven operating and financial track record, which fits wellwith our existing investment portfolio." Norse Air Leasing offers a global on-site service providing aircraft, crew andmaintenance. Norse Air has a number of aircraft based in various parts of Africaand in the East, including, Ivory Coast, Gabon, Madagascar, Mozambique, CentralAfrican Republic, Ghana, Singapore and Afghanistan. The Company has successfullyoperated aircraft for the World Food Programme, the International Red Cross, theUnited Nations and other Non-Governmental Organisations and internationalbusinesses, often under hostile environmental conditions. Norse Air providesaircraft such as King Airs, Beechcrafts, SAABs and Learjets. Norse Air Charter is focused on the provision of passenger and cargo charterservices both within and to Africa. Norse Air's extensive network of contacts,and its ability to leverage long-standing relationships with both Governmentaland Non-Governmental Organisations, enables it to successfully manage flightsinto inhospitable areas with little infrastructure as well as to deal withmilitant activity. In Southern Africa, Norse Air is widely recognised as the leading expert indeploying specifically Russian cargo aircraft to move outsized cargo such asmining and telecommunications equipment, as well as hazardous equipment for theSouth African Government and wild game. Although offering broad-based passengerservices, Norse Air specialises in passenger charter flights primarily forGovernmental units in the service of South African and African Unionpeacekeeping initiatives in Africa. The aircraft utilised for such passengerflights include MD 83s, DC9s and Boeing type aircraft with an emphasis placed onsafety and security, and the provision of highly professional and flexibleservices. Norse Air Charter holds an A1, N1 and N4 category license issued bythe South African Civil Aviation Authorities allowing the Company to operate anycategory of aircraft anywhere in the world for operations commencing from SouthAfrica. Norse Air Sales is an increasingly profitable business with a growing clientbase. It has gained significant momentum over the past three years with therecovery in the values of turbo prop and small jets generating significantinterest amongst investors, corporations and aircraft operators in owning theirown aircraft. Norse Air Maintenance meets the demanding maintenance requirements of theGroup's operations, utilising on site engineers in various developing countriesbacked up by the Company's main base at Rand Airport, Johannesburg. Themaintenance operation is licensed to service a number of types of aircraftincluding SAAB, Embraer and Beechcraft, as well as jets such as the Citation andthe Learjet. Although its primary focus is on maintaining the various aircraftowned by the Company, it also maintains aircraft on behalf of third parties. End For further information, please contact: Lonrho Africa Plc +44 (020) 7016 5105David Lenigas, Chief Executive +44 (0)7881 825 378Emma Priestley, Executive Director +44 (0)7867 785 177 Strand Partners Limited +44 (0)20 7409 3494Simon RaggettMatthew Chandler Cardew Group +44 (0)20 7930 0777Nadja Vetter +44 (0)7941 340 436Eden Mendel +44 (0)7887 676 603Emma Consett +44 (0)7971 468 308 Notes to Editors Lonrho is in the process of re-establishing a significant presence on theAfrican continent. Its investment and acquisition strategy, which was adoptedfollowing the appointment of David Lenigas as Chairman and Chief Executive andsubsequent shareholder approval in February 2006, focuses on the naturalresources, infrastructure, leisure and agribusiness sectors. Lonrho's executiveteam has considerable experience across these industries in a wide range ofcountries. This year, Lonrho has announced investments in Brinkley Mining Plc,Nare Diamonds Ltd, Luba Freeport and Fly540. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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