4th Jun 2007 07:02
Lonrho PLC04 June 2007 LONRHO PLC Specialised Zimbabwe Focused Investment Vehicle Lonrho Plc ("Lonrho"), the African conglomerate with a diverse portfolio ofinvestments ranging from infrastructure, transportation, support services andnatural resources, announces today that it intends to create a specialist UKlisted investment company named LonZim ("LonZim" or the "Company") whoseprincipal focus will be to acquire a portfolio of commercial property projectsand investments in assets and companies in Zimbabwe which have significantopportunity for future growth. It is intended that LonZim, with Lonrho's brokers Collins Stewart, will seek toraise a minimum of £50 million. Lonrho will manage and hold a sizeable stake inthe Company Lonrho's management team and consultants offer an in-depth understanding ofbusiness and investment in Africa, including Zimbabwe. The team bringssignificant experience in brokering deals in difficult parts of the continentwith a successful track record. The Company will adhere to all laws applying to foreign investment in Zimbabwe,at both international and national levels. David Lenigas, Lonrho's Executive Chairman and Chief Executive, commented: "Whilst there are clearly risks associated with investing in Zimbabwe, I believethat the opportunities for economic growth in the country are enormous and theintended establishment of LonZim offers Lonrho shareholders an opportunity toparticipate in this. However, the risk exposure for Lonrho shareholders isminimized by the nature of the investment through a separate listed vehicle. "It is intended that LonZim will invest 80% in commercial property opportunitiesbut will also look to identify Zimbabwean assets and companies with thepotential to grow rapidly with the benefit of investment and internationalmanagement expertise. Lonrho has the people in place to offer support and adviceto LonZim and the projects it invests in. "Lonrho believes that there is a significant opportunity in the Zimbabweanmarket, which has suffered from severe underinvestment. This potentially offerssignificant upside. Lonrho is committed to investing in Africa to developinfrastructure and projects that support the growth of African business. As suchI believe that cautious and well informed investment in Zimbabwe will servethese purposes and offer returns not only to Lonrho and Lonzim shareholders butalso Zimbabwean business and the Zimbabwean economy. "I strongly believe that the best way to encourage economic growth within acountry and nurture the development of a strong infrastructure and businessculture is through private, foreign direct investment and this vehicle fits withthat principle." 4 June 2007 For further information, please contact: Lonrho 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 1379Collins Stewart EuropePaul Compton +44 (0) 20 7523 8000Simon Atkinson +44 (0) 20 7523 8000Ellen Francis +44 (0) 20 7523 8000 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.comBrinkley Mining - www.brinkley-mining.comLuba Freeport - www.lubafreeport.comFly540 - www.fly540.comNorse Air - www.norseair.co.zaSwissta Holdings - www.swissta.comCountermine plc - www.countermine.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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