Disposal of Aldeamento Turistico de Macuti SARL

RNS Number : 4440P

LonZim PLC

04 October 2011

 



4 October 2011

LonZim Plc
("LonZim" or "the Company")

LonZim completes disposal of Aldeamento Turistico de Macuti SARL "ATdM" in Mozambique to focus on core Zimbabwean businesses

LonZim is pleased to announce that it has completed a share purchase agreement to dispose of its 80% holding in ATdM, a company with a long lease on a prospective costal development site in Beira, Mozambique as part of LonZim's growing focus on the economic opportunities within Zimbabwe.

LonZim has disposed of the 80% stake in ATdM for US$5.1m to Lonrho Hotels (Holdings) Limited, a 100% subsidiary of Lonrho Plc who have a 22.92% interest in LonZim. Consideration for the shares is to be settled in cash, paid monthly over 5 years with interest of 7% per annum accrued on the outstanding balance. In addition Lonrho Hotels will repay an inter-company loan of US$1.5m to LonZim and will take on potential liabilities of US$1.2 that LonZim assumed on the original acquisition.

ATdM reported net assets of £2.3m as at 28 February 2011 and a loss after tax of £0.1m for the 6 months ended 28 February 2011.

The disposal of ATdM will allow LonZim to realise cashflows from non-core assets which are to be reinvested into LonZim's core activities within Zimbabwe.

An independent valuation report on the property lease was commissioned by LonZim and the Non-Executive directors, and valued the lease at approximately US$7.3m.

The transaction is a related party transaction for the purposes of the AIM Rules for Companies. With the exception of the LonZim directors who are also directors of Lonrho Plc, the Non-Executive LonZim directors, Paul Turner, Paul Heber and Colin Orr Ewing, having consulted with WH Ireland, the Company's nominated advisor, consider that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

Enquiries

LonZim Plc
David Lenigas		Executive Chairman	[phone]
Geoffrey White		Chief Executive Officer	[phone]
David Armstrong		Finance Director	[phone]
WH Ireland Ltd: Nomad and Broker
James Joyce			[phone]
Pelham Bell Pottinger
James MacFarlane			[phone]
			[phone]

 

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