Disposal of Aldeamento Turistico de Macuti SARL (4440P)
October 04 2011 - 2:00AM
UK Regulatory
TIDMLZM
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 GBP2.3m as at 28 February 2011 and a
loss after tax of GBP0.1m 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
+44 (0) 7881 825
David Lenigas Executive Chairman 378
Chief Executive +44 (0) 7717 307
Geoffrey White Officer 308
+44 (0) 7833 054
David Armstrong Finance Director 693
WH Ireland Ltd: Nomad and Broker
+44 (0) 20 7220
James Joyce 1666
Pelham Bell
Pottinger
+44 (0) 20 7861
James MacFarlane 3864
+44 (0) 7841 672
831
This information is provided by RNS
The company news service from the London Stock Exchange
END
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