Lonrho, Cambria in $2,9m spat over planes
Saturday, 09 June 2012 19:43
Darlington Musarurwa
Business Editor
Cambria Africa — formerly LonZim — is currently embroiled in a dispute with its major shareholder Lonrho over payment of insurance proceeds, outstanding lease payments and the condition of its two planes that were being operated by Fly540, a wholly owned subsidiary of Lonrho.
Lonrho has a 22,9 percent stake in the Zimbabwe-focused business entity. In its interim financials for the year ending February 29, Cambria Africa contends that it is owed in excess of $2,9 million for proceeds related to the lease of a Fokker F27-500 Cargo plane to 540 Uganda Limited in September 2008 and also the lease of the ATR 42-320 (ATR) to Five Forty Aviation Limited in July 2009.
A third aircraft, which was also leased by 540, was destroyed in an accident in January 2011.
In particular, the bulk of the money, about $2,3 million, is owed as lease and maintenance reserve payments and interest for the ATR plane, while $148 000 and $527 000 is believed to have accrued as insurance proceeds and related interest and lease and maintenance reserve payments for the F27 plane.
However, Lonrho claims that it doesn’t owe Cambria anything. Instead, it claims that the Alternative Investment Market (AIM) listed company has an obligation of $829 000
“although the basis for this has not yet been set out”.
Noted Cambria: “Cambria continues to own two aircraft through its subsidiary LonZim Air (B.V.I.) Limited: a Fokker F27-500 Cargo (F27) and an ATR 42-320 (ATR). The F27 was leased to 540 (Uganda) Limited in September 2008 and the ATR was leased to Five Forty Aviation Limited in July 2009. Both entities (collectively “540”) are, or are understood to be subsidiaries of Lonrho. A third aircraft leased by 540 was destroyed in an accident in January 2011. “A number of disputes have arisen in relation to these aircraft and associated contracts. These disputes relate, inter alia, to the payment of insurance proceeds, outstanding lease payments, maintenance reserves and the condition of the two remaining aircraft. Cambria considers that substantial sums are due from 540. 540 contends that no sums are due to Cambria and/or its associated companies and that, overall, it is owed approximately $829 000 in relation to the aircraft, although the basis for this has not yet been set out.
“Taking these matters into account Cambria has recognised a contingent asset of $2,9 million in relation to the aircraft and sums due from 540.
“In addition, Cambria’s short-term debtors include $1,3 million recorded in the books of LonZim Air (B.V.I.) Limited in relation to the above issues up to 31 August 2011.”
The dispute between the two companies seemingly reflects a growing rift between them.
During the first quarter of the year, LonZim decided to change its name to Cambria and indicated that it can operate without direct support from its major shareholder.
Board changes also followed as five members of the board nominated by Lonrho agreed to step down in February.
The directors were subsequently replaced with four new directors: Mr Ian Perkins, who was appointed as a non-executive chairman; Mr Edzo Wisman, appointed as executive director and chief executive officer, and Itai Mazaiwana and Fred Jones, who joined the board as non-executive directors. Mr Paul Turner became the company’s deputy chairman.
Initially, Lonrho, through the then LonZim, had intended to introduce operations for a Fly540 airline based in Zimbabwe to service both the domestic and regional markets and emerging local and connecting traffic.
Flights were scheduled to start from September 2009.
At the time, LonZim Air, a wholly owned subsidiary of LonZim plc, had invested $200 000 in the acquisition of 90 percent of Zimbabwe company Sol Air (Private) Limited, and Fly540 Zimbabwe had now obtained the necessary air services licence.
A further $4,3 million was also reserved for acquiring an ATR 42 turbo prop from the Lonrho Aviation fleet, and US$2 million for the operational costs associated with commencing operations and a working capital provision of $3,9 million for the first 12 months.
This capability was supposed to be complemented by a freight service.
In addition, Fly540 Africa (BVI) was supposed to receive $100 000 to initiate flight operations in Zimbabwe, and thereafter a licence fee of 2,5 percent of gross turnover and a monthly management fee of $35 000 for managerial services for the low-cost airline.
However, to date the airline has not taken to the skies.
On the overall, Cambria, which has five core businesses in Zimbabwe — Leopard Rock Hotel, Celsys, CES, Millchem and Payserv — recorded a $15 million loss in the six-month period ending February 29.
Revenues and gross revenues, however, rose to $6,4 million from $4,8 million in the same period a year earlier, while gross profit advanced $3,5 million from 2,1 million a year ago.
Cambria intends to list this year by way of a primary introduction through buying out minority shareholders in Celsys, which is already listed on the Zimbabwe Stock Exchange.
Already, $350 000 has been used in ZSE listing preparation fees.
Labels: LONRHO, LONZIM
Read more...
Lonrho pines after African glory
30/12/2011 00:00:00
by Arash Massoudi
GEOFFREY White spends three weeks of every month jetting across sub-Saharan Africa to check investments ranging from nectarine farms in Zimbabwe to a luxury hotel in the Democratic Republic of Congo.
The chief executive of Lonrho, the Africa-focused conglomerate, White believes that the company’s assets, in what he calls the “the world’s last frontier”, will bear fruit.
White, who used to give business advice to Gulf royal families, joined forces with David Lenigas, Lonrho’s chairman, to resurrect the 102-year-old company that had collapsed from its heights as a FTSE 100 constituent.
“Africa is where Asia was 30 years ago and, in reality, 10 to 15 years in front of people expectations,” Lenigas said, rattling off statistics about the continent’s booming growth.
Lonrho, short for London-Rhodesia, had been built into a multi-continent conglomerate by Roland “Tiny” Rowland, its larger-than-life leader who led the company for more than 30 years beginning in 1963.
But Roland’s empire unravelled in the early 1990s due to declining metal prices and debt.
By 1993 he was ousted as chief executive. Lonrho’s assets were gradually sold and Lonmin, now a FTSE 250 metals company, was spun out. A loss-making hotel in Mozambique was the only asset left on Lonrho’s books by December 2005.
Enter Lenigas, a mining specialist, who became chairman and convinced the board to once again bet on Africa. Along with White, who joined two years later, the duo have revived Lonrho, which they say still has “the strength of a Coca-Cola brand name” in Africa.
Six years on, their gamble is starting to pay off. They have made investments in agribusiness, infrastructure, transportation, hotels and support services in 17 African countries.
Analysts at WH Ireland project that the company’s overall revenues will more than double to $462m in the 15 months to December 31 of next year as the financial year is aligned with the calendar year. Pre-tax profits are estimated to increase by 83 per cent.
“We think a conglomerate is a clever way to diversify risk across Africa,” Lenigas said of the company’s broad portfolio.
Boasting that Lonrho can get fruit from a Zimbabwean farm to central London in three days, White said the company had integrated every step of the process from cold storage to delivery.
Produce accounts for half of the company’s agribusiness, which is 60 per cent of overall revenues. The other half comes from the company’s fish exports, which are sold to big supermarkets in the UK, US and South Africa.
“We don’t think there’s risk in non-cereal farming. If there’s a famine, people won’t come after our green peppers,” said White.
But the shares in the company, which returned to the main market from Aim in April, have dropped 49 per cent on the year to 9.17p, giving the company a market capitalisation of £129m.
“Our main shareholders have been there since 2006 and see this as an investment in the African growth story,” said White.
He adds: “The last five years have been about building the fundamentals, 2012 is about delivering on them.”
The company said that most of the proceeds of a £27m placing in December will be used to buy out minority stakes in its agribusiness.
And Lenigas added that the next time he spoke with shareholders about money, he hoped that it was to tell them about a dividend.
Damian McNeela at Panmure Gordon said that would depend on what the company did with its loss-making airline, Fly540. Many suspect it will be acquired in a reverse takeover by Rubicon Diversified Investments, a cash shell with links to Sir Stelios Haji-Ioannou’s latest airline project, fastjet.com.
“Strategically, the Lonrho story sounds great, but when anyone looks into it, they wonder why aviation,” said McNeela.
While not ruling out the possibility of a reverse takeover, the company’s leaders are characteristically bullish about the possibilities for African aviation.
“There’s screaming demand for north-south and east-west travel in Africa,” said Lenigas.
Labels: LONRHO, LONZIM
Read more...
LonZim raises US$1,5m for working capital
Tuesday, 20 September 2011 02:00
Bright Madera Senior Business Reporter
AIM-listed investment company, LonZim Plc has raised US$1,5 million from Consilium Emerging Markets Return Fund for its working capital. The group secured the funding via a placing of 3 988 439 shares of 0,01 pence each at a price of 23 pence per share. These represent about six percent of the company's enlarged issued share capital.
A private placement is a funding round of securities, which are sold without an initial public offering, usually to a small number of chosen private investors.
LonZim told shareholders last week that the placement would provide working capital for the group's existing businesses and provide it with the ability to continue implementing its investment strategy.
"Consilium is a substantial shareholder in the company and therefore its participation in the placing is a related party transaction for the purposes of the AIM rules for companies,: said the company.
"Having consulted with WH Ireland, the nominated advisor to the company, the directors of the company consider the terms of Consilium's participation in the placing to be fair and reasonable in so far as all the shareholders of the company are concerned."
Following admission to trading on AIM, the company's total issued share capital will be 58 133 908 ordinary shares.
The Zimbabwe focused investment conglomerate, which has a primary listing in London, is expected to list on the Zimbabwe Stock Exchange to meet indigenisation requirements.
The firm's secondary listing on the ZSE was expected to be complete in the second half of the year.
Upon listing the firm's shares would have full fungibility on both stock markets.
Full fungibility refers to a situation where a listed company's shares are tradable and/or transferable between stock markets on which the firm is listed.
LonZim believes the proposed listing on ZSE will help strengthen its growth prospects and as a result maximise the value of the company and its shares for the benefit of shareholders.
The group also indicated that the proposed listing on the local bourse would facilitate direct investment in company by locals, local corporations and financial institutions and also support economic growth in line with the firm's objective of playing an integral role in the revival of the country's economy.
This would also provide LonZim with additional opportunities to access capital for growth, future expansion and the implementation of its existing plans.
Labels: LONZIM, ZSE
Read more...
LonZim well-placed for recovery
Posted by By Brett Mashingaidze at 24 May, at 17 : 59 PM Print
Zimbabwe-focused investment company LonZim said its five core businesses are well placed for economic recovery in the country after the firm revealed increase revenues and a reduced operating loss in its interim results.
During the six months to 28 February, LonZim’s revenues improved 14.4 per cent to £3.1 million while its operating loss reduced to £2.5 million. The company reported that its Leopard Rock Hotel had completed the refurbishment it has undergone since LonZim acquired it in April 2009.
Although occupancy rates at the hotel currently remain low generally, with occasionally short periods of full occupancy driven by specific events such as weddings and conferences, LonZim believes its refurbishment has made it ready to be an integral part of the rebuilding of the Zimbabwean tourist industry.
LonZim’s wholly-owned Paynet business continues to provide electronic funds transfers (EFT) systems to the majority of banks in Zimbabwe as well as microfinance through its Tradanet platform, the company reported.
Paynet saw an increase in EFT business during the period, while Tradanet saw a significant increase in the number of microfinance loans in the market and has benefited from increased confidence returning to the economy. Paynet is seeking increased access to capital to be able to meet the growing demand for loans via Tradanat.
Celsys – in which LonZim has a 60 per cent holding – has centred its operations around security and general printing, as well as the distribution and lease of ATMs and point of sale (POS) equipment. LonZim believes that printing remains an important industry sector where volumes will increase as the economy recovers.
LonZim’s Gardoserve chemicals blending and importation business, which it owns outright, is beginning to see growth as a result of the improving industrial and mining sectors of the economy.
ForgetMeNot Africa, in which LonZim has a 51 per cent holding, has successfully rolled out its FMNA platform for instant messaging and other message platforms with several networks across Africa.
In Zimbabwe the launch of FMNA with Econet has begun with encouraging uptake. LonZim added that initial results indicate this will be FMNA’s strongest market to date.
Elsewhere, there has been little further progress at LonZim’s development site at Beira in Mozambique nor at Sol Aviation (90 per cent-owned by LonZim), where the roll out of its Fly540 Zimbabwe regional airline operation remains on hold until the demand and market dynamics of operating in the Zimbabwean aviation market become clearer.
LonZim has withdrawn from the Zimbabwean pharmaceutical products market, where its Panafmed subsidiary had been operating.
“LonZim has seen progress during the period, and the economic situation in Zimbabwe continues to improve, albeit from a very low starting point.
“There is relative stability in the commercial environment that is allowing businesses to manage their operations in a normalised environment, a great improvement from the recent hyperinflationary economic conditions,” said David Lenigas, LonZim’s executive chairman.
After December’s share placing, which raised around £5 million with institutions, LonZim had cash of £2.6 million on its balance sheet at the end of February.
LonZim’s share price was up 4.2% at 25 pence at 8:15am.
Labels: LONZIM
Read more...
UK firm hails Zim economic prospects
By Bright Madera
LONDON-based Amstel Securities NV says Zimbabwe’s economy is "the final frontier market in Africa" and very attractive. Zimbabwe with the potential to grow its GDP to US$12 billion by 2015 is begging to draw foreign investment on the back of huge investment potential.
The securities firm said investors have
ignored the country’s tremendous recovery potential brought about by the liberalisation of the economy in February last year. According to the International Monetary Fund, the country’s economy is estimated around US$9 billion having doubled from last year’s value of US$4,4 billion.
The country’s key driver for growth is the mineral wealth, especially in low cost in platinum production with new projects this year worth US$1 billion already underway.
Zimbabwe also offers significant opportunities in the agricultural sector, which is expected to grow by 30 percent this year, buoyed by increased production in tobacco.
Power generation that has threatened the viability of industries also offers opportunities for investors to develop hydro-power projects as well as the tourism sector.
Tourism is the country’s quick win sector, which after a decade of massive decline is forecast to generate about US$1 billion in revenue.
"We consider post-conflict Zimbabwe, the final frontier market in Africa, a high conviction idea, which has been overlooked, reads part of the report, "Zimbabwe has good recovery potential, propelled by the dollarisation of its economy in 2009."
Dollarisation has restored the country’s economy enforcing fiscal discipline.
"These improvements have made Zimbabwe a much more vibrant economy with good further recovery potential," added Amstel Securities.
On the back of economic developments in Zimbabwe Amstel’s coverage of AIM-listed LonZim gives the investment company a fair value of 45p per share implying upside their discounted cash flow valuation per share of 77p.
Amstel said there would be a surge in projected revenue as all of LonZim subsidiaries are expected to perform beyond expectations.
LonZim has got a 51 percent shareholding in Forget Me Not Africa, The Leopard Rock Hotel, and Tradanet, a micro finance company.
FMN Afica supports telecom operators covering 19 million people with unified messaging services after entering into a deal with Safaricom and Econet Wireless Zimbabwe.
The investment company also has a 60 percent shareholding in Zimbabwe Stock Exchange listed firm Celsys Limited, Paynet Zimbabwe 100 percent, Millpal Chemicals 100 percent, Fly540 Zimbabwe, 90 percent, Aldeamento Turistico of Mozambique 80 percent and a 51 percent shareholding in Panafmed Limited in South Africa.
LonZim this year announced its plans to list on the ZSE in the last quarter of the year, and shares would be fully fungible between AIM and ZSE.
LonZim is currently capitalised at US$9 million.
A dual listing will strengthen LonZim’s growth prospects as new investments will become easier and result in maximising shareholder value.
Labels: AMSTEL SECURITIES NV, LONZIM, NEOCOLONIALISM
Read more...
LonZim upbeat over economic recovery
by Gilbert Nyambabvu
11/05/2010 00:00:00
ZIMBABWE-focused investment group, LonZim says it is fairly upbeat about the country’s economic recovery but urges authorities to address existing challenges such as liquidity constraints in order to consolidate the turn-around.
LonZim - whose interests in the country include the Zimbabwe Stock Exchange-listed Celsys Limited, the Leopard Rock Hotel in the eastern highlands as well as a new airline Fly540 - said group turnover had so far increased to $4 million from about $700000 in the comparative period last year.
“Gradually the economy can be seen to be making progress. The business environment has rationalised with dollarisation and the demise of hyperinflation. Companies are once again able to understand their business models, plan for the future and forecast with some accuracy what their objectives and targets are.
“The size of the economy remains very depressed. However, it is growing on a month-by-month basis, encouraged by continuing investment into rebuilding Zimbabwe from the international, public and, increasingly, the private sector,” Chief Executive Geoffrey White said in a statement accompanying the results.
The company said its seven core divisions in the country are now well placed to take advantage of the economic recovery adding significant investment s had also been made in new plant and machinery in the last year as it became clear that the new coalition administration would implement business-friendly policies.
“Where many Zimbabwean businesses are struggling with liquidity and access to capital, LonZim's strategy has always been to pre-fund its portfolio of operations to enable them to be first back to market,” White said.
The company is completing a US$1.7 million refurbishment of its world renowned Leopard Rock hotel and adds that Paynet – an electronic funds transfer system serving the country’s banks – is also in a strong position to grow as the country’s financial services sector recovers.
The group’s regional Fly540 airline is expected to launch its Zimbabwe operations with a limited service “to provide some domestic lift and service the international market requirements from neighbouring country operations.”
“Zimbabwe remains a key target market for Fly540 once international traffic numbers start to build, and the airport at Harare airport is of long term strategic importance as one of the best infrastructure facilities in Southern Africa,” the company said.
--------------------------------------------------------------------------------
Advertisement
--------------------------------------------------------------------------------
Fly540 Zimbabwe was expected to deliver affordable air links to key domestic and regional cities from a Harare hub with LonZim saying the venture was central to its “investment strategy of identifying current market opportunities in Zimbabwe and establishing companies that will benefit from the economic recovery of the country”.
“We are confident that Zimbabwe has a future. The people of Zimbabwe remain one of the most industrious, valued and skilled work-forces on the Continent, the basic infrastructure across the country is strong and Zimbabwe remains a beautiful destination with significant tourism and agricultural potential.
“The opportunity for the country to once again become a leading African economy remains tantalisingly available,” White said.
Labels: LONRHO, LONZIM, NEOCOLONIALISM
Read more...
COMMENT - LonZim is an 'investment fund' created by LonRho (London-Rhodesia), Tiny Rowland's company. Predictably someone is profiting from the low prices in Zimbabwe created by sanctions.
LonZim delivers strong growth as economy recovers
Proactive Investors
Tue, 26 Jan 2010 15:07:00 +0000
LONZIM said it is delivering strong growth as the general Zimbabwe market begins to recover, as it reported a return to profit for the full year ended 31 August 2009.
LonZim reported £2.6 million in turnover, up from 188,000 a year earlier, and a pretax profit of £1.08 million, compared with a £1.09 million loss in the preceding year. Shares were buoyed by the positive results, climbing nearly 9% following the announcement.
Fundamental changes in the Zimbabwe economy in early 2009 brought the end of hyperinflation and slowly helped the country’s employment recover. The changes were largely the result of two key events, the establishment of the inclusive Government in February and the US dollarization of the currency.
Most of its operating businesses have become cash generative and are delivering strong growth in the current year, LonZim said. Net assets rose to £32.6 million at the year-end, following a share buy back of £1.3 million. Cash held at the end of the year was £2.4 million and the company’s net assets per share were 101.6p.
During Zimbabwe’s economic downturn, the company paid its partner’s debts and wages, consequently they retained a skilled workforce and are ready to trade.
Importantly, LonZim's subsidiaries had access to funds and liquidity, at a time when finding liquidity was very challenging in the market.
Through the support and acquisition of distressed businesses, which were forced to operate on a barter system, the company’s subsidiaries have successfully positioned themselves to be 'first back to market'.
During the financial year, LonZim acquired several businesses, which fell in line with its investment criteria.
In October 2008, the company bought 100% of electronic money transfer (ETF) business Paynet Ltd for US$3.19 million. Paynet’s newly built commercial property in Harare which is valued at US$0.95 million, was included in the acquisition.
Paynet provides an EFT platform for 19 of the 21 Zimbabwean banks and more than 1,000 Zimbabwean corporate clients. The Paynet business collapsed under hyperinflation, but LonZim maintained the business's staff, retaining systems in place ready for recovery. In February 2009, the business started to make progress and monthly transactions increased steadily as the economy restarted.
In April 2009, LonZim acquired Zimbabwe's iconic Leopard Rock Hotel for US$8.5 million, the property includes a PGA rated golf course and 400 hectare game farm.
The company said that the hotel has already seen a significant increase in occupancy with growth in bookings and revenues for conferences and meetings as well as from leisure orientated visitors. As the market recovers, the hotel will expand its accommodation and facilities and plans to attract the PGA to hold a tournament at the hotel in due course.
Also during the year, LonZim bought controlling 51% stakes in the ForgetMeNot Africa (FMNA) and Panafmed Ltd. FMNA is a telecommunications software developer, providing a 'message optimiser' application for basic non-3G mobile phones which provide two-way SMS - SMS, instant messaging and email technology platform without the need for sophisticated infrastructure. Panafmed provides a refrigerated distribution logistics for pharmaceuticals and medical product delivery and distribution into and around Zimbabwe.
The company also bought a 6,600 square metres industrial site, including 2,650 square metres of offices and factory space, for US$0.95 million. LonZim acquired the property from the Zimbabwean banking group Kingdom Bank.
LonZim also announced it intends to launch oparations of African low-cost airline Fly540 in Zimbabwe. The company has allocated funds from existing resources for the deployment and establishment of the airline. Operations will be based at Harare airport to serve as a regional freight and passenger operation as and when the market develops.
LonZim said it continues to undertake detailed due diligence on a range of potential acquisitions, where it can identify real opportunities for growth in value in a normalised economic environment.
Labels: COLOUR REVOLUTIONS, LONRHO, LONZIM, NEOCOLONIALISM, NEOLIBERALISM
Read more...
(HERALD) LonZim steps up drive to rebuild Zim economy
COMMENT -
" LonZim steps up drive to rebuild Zim economy " how generous of this for profit investment company.
LonZim steps up drive to rebuild Zim economy
By Walter Muchinguri
LONDON Stock Exchange-listed investment firm, LonZim has raised £1,17 million after issuing new ordinary shares, which will be used to help recapitalise its subsidiaries.
LonZim, which has several operations in Zimbabwe and others in Mozambique, also reaffirmed its commitment to the rebuilding of Zimbabwe.
"The signs of economic growth in Zimbabwe are now tangible," LonZim executive chairman Mr David Lenigas said.
The LonZim board announced that it raised £1 170 269 through issuing 4 255 525 new ordinary shares of 0.01 pence each in the share capital of the company at 27.5 pence per placing share.
The placing shares, the board said were unconditionally placed save for their admission to trading on AIM.
The placing shares will together represent approximately 12 percent of the company’s enlarged issued share capital and the total number of shares in issue following completion of the placing will be 36 331 525.
The funds raised by the company will help to ensure that LonZim subsidiary companies have access to working capital to continue to run their businesses in a commercial and professional manner as economic growth returns to the important market sectors where LonZim operates.
The company has interests in Zimbabwe Stock Exchange-listed company Celsys and Paynet that owns and operates an Electronic Funds Transfer system that automates the process of companies transmitting bulk payment instructions to their corresponding financial institutions.
Other local operations include Gardoserve (Pvt) Limited that is trading as Millpal Chemicals that has been supplying chemicals to industries in Zimbabwe for over 20 years. It also owns the luxurious Leopard Rock Hotel in Vumba near Mutare.
It also plans to operate a low cost airline Fly40 Zimbabwe and has also established Medisure, a company that will import, wholesale and distribute pharmaceutical products in Zimbabwe.
In addition, LonZim is currently reviewing a number of potential investment opportunities including the acquisition and development of several portfolios in the country.
Labels: LONRHO, LONZIM
Read more...
Lonrho to funnel US$100m more into Zim investments
Business Reporter
LONRHO Plc plans to inject a further US$100 million for investments on the back of anticipated economic recovery following the formation of an inclusive Government, executive director Mr Geoffrey White has said.
The company’s website shows that, "the investment betting on a recovery in Zimbabwe’s economy, will announce ‘big’ acquisitions."
"We’ll be announcing a couple of really big deals in the next two to three weeks," he said.
Lonrho Plc chairman Mr David Lenigas, said LonZim, will still be "fine" should the economy fail to turn around in the next five years.
The conglomerate has 20 percent stake in LonZim.
While LonZim’s existing investments are "commercially sound, basically none of them are making money, Adopting South Africa’s currency, the rand, would "bring an element of stability" for businesses in the country", he added. "Zimbabwe should adopt the currency to stabilise the economy"
LonZim is an investment company created by London-listed Lonrho Plc to acquire a portfolio of commercial property projects and investments in assets and companies in Zimbabwe that have significant opportunity for future growth.
The company has so far acquired a 60 percent stake in a payroll company that works with 16 banks Paynet, Celsys, and Millpal, an industrial chemical supplier.
Lonrho, through its subsidiary, LonZim, has started exploring avenues for investments in the country with between six to eight deals expected to be sealed soon.
Mr Lenigas said within the next two to three years, LonZim would be the largest conglomerate in Zimbabwe.
Lonrho also operates East Africa’s biggest private airline and plans to start operating its Fly540 airline in Angola in the next few weeks.
Labels: LONRHO, LONZIM, NEOCOLONIALISM, SANCTIONS
Read more...
LonZim to launch pan-African airline
Business Reporter
LONZIM Plc said it would launch its Pan-African airline, Fly540, in Zimbabwe within the next twenty-four months. The company said it has allocated a budget of US$3,3 million payable out of its cash resources to establish the airline in Zimba-bwe and buy the initial aircraft for its fleet.
The airline will deploy a mixed fleet of turbo prop and jet aircraft to assist with the development of the Harare hub over the course of the next 24 months, LonZim said.
Fly540 Zimbabwe will operate as part of the Fly540 Africa network and offer domestic and regional "low cost" air travel to existing and new target markets, LonZim said.
Fly540 is already in other African countries like Uganda and Kenya, where it was launched in November 2006.
Lonrho paid US$1,5 million for a 49 percent stake in the airliner whose objective is providing an "alternative, value for money" airline network, which would meet any growing domestic travel demand.
The group said it remains strategically focused on the development of business opportunities in infrastructure, transportation, support services and natural resources.
Since 2006 the Lonrho group has invested in or acquired control of Hotel Cardoso, Lonrho Mining, Luba Freeport, Fly540, Norse Air, Swissta Holdings, Independent Liner Services, Bytes and Pieces and Kwikbuild among others
LonZim said it would remain a long-term active investment company, building a portfolio of investments primarily in Zimbabwe, which may benefit from any improvement of the Zimbabwean economy over the longer term.
"Investments will also be made with business outside Zimbabwe with operations within Zimbabwe particularly in the Beira Corridor, which links Zimbabwe to the coast.
"The company will target investments, which may benefit from a significant improvement in the Zimbabwean economy, with a focus on sectors with a potential for rapid recovery," LonZim said.
Labels: AIRLINES, FLY540, LONZIM
Read more...
