3rd Apr 2007 07:02
Lonrho Africa PLC03 April 2007 3 April 2007 LONRHO AFRICA PLC ("Lonrho" or "the Company") ACQUIRES AFRICAN WATER BOTTLING COMPANY & LAUNCHES LONRHO SPRINGS Lonrho is pleased to announce it is to acquire an additional 50% of SwisstaHoldings Limited ("Swissta"), taking the Company's total holding to 100%, for acash consideration of US$752,500 to be paid in four installments over the next12 months. Lonrho also intends to acquire 100% of Swissta Mozambique Lda, the subsidiary ofSwissta, for a cash consideration of US$315,550. Swissta intends to grow into aleading water bottling company in Eastern and Southern Africa. This provides Lonrho with invaluable access to the African bottled water market.It is also part of the Lonrho's broader strategy to become a pan Africancompany, focused on investing in growth businesses that will make a differenceto Africa by enhancing basic infrastructure to facilitate the sustainable growthof the continent as a resources and business hub Lonrho Springs A new Lonrho division, Lonrho Springs, has been established, to apply theSwissta model of water bottling plants across Africa. Lonrho Springs will becomethe brand name for bottled water to further strengthen Lonrho's profile andincrease brand recognition as Lonrho rebuilds its African investment portfolio. Lonrho Springs will be run by Lonrho CEO David Lenigas in conjunction with theco-founders of Swissta, Michael Strehler and David Brunner. With their extensiveknowledge of the region, the industry and technology, Mr Strehler and Mr Brunnerwill operate and expand the business throughout Africa with the aim of capturinga significant portion of the African water bottling market. Swissta At present Swissta, has current investments in water-related businesses inMozambique and the Democratic Republic of Congo. Swissta Mozambique Lda, a subsidiary of Swissta, has owned 30% of the waterbottling market in Maputo, Mozambique's capital since April 2006. Swissta'swater bottling plant currently produces approximately 250,000 litres per month,and the equivalent of 6 million half litre bottles of water a year. Swissta RDC SpRL, a company owned 21.4% by Swissta, is situated in theDemocratic Republic of Congo. It has been in production since June 2006 andproduces similar quantities and product ranges to the Mozambique plant . Swissta Strategy The Swissta plants operate to the highest international standards for bottledwater and water related products, targeting a gap in the market for high qualitywater at affordable prices. To target the rapidly growing African middle class,Swissta has also recently launched bagged ice and sugar-free flavoured water asa healthy alternative to soft drinks. David Lenigas, Lonrho's Executive Chairman and Chief Executive, commented: "The provision of affordable and quality drinking water is a key step towardsimproving the health and well being of any population. Our ultimate objective isto lower the dependency on expensive imported water which has negative economicconsequences. This acquisition is another example of Lonrho's strategy ofinvesting in African infrastructure by strengthening local industry to pave theway for future growth and new market opportunities." END For further information, please contact: Lonrho Africa Plc +44 (0) 20 7016 5105David Lenigas, Chief Executive +44 (0)7881 825 378Emma Priestley, Executive Director +44 (0)7867 785 177Pelham PRCharles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297 903Alisdair Haythornthwaite +44 (0) 20 7743 6676 +44 (0) 771 472 1379Strand PartnersSimon Raggett +44 (0) 20 7409 3494 +44 (0) 7769 883666 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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