New thread started as Epic changed from LAF to LONR - May 07.





Epic : LONR

Web Site : http://www.lonrho.com/


Its something different, and something exciting imo.



Nice recent Telegraph write up to (April 2007) :

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/04/04/cnlonrho04.xml


.

Lonrho PLC
15 October 2007
LONRHO PLC
(Lonrho or the 'Company')

Lonrho increases equity stake in Container Shipping Company SAILS to 51%

Lonrho (AIM: LONR), the conglomerate with a structured portfolio of African
investments, is pleased to announce that it has acquired a further 6% of SA
Liners Limited ( 'SAILS' ) for US$500,000, taking Lonrho's holding in SA Liners
to 51% of the company.

This increase reflects the Board of Lonrho's strategy that Lonrho should,
whenever possible, maintain a majority shareholding and Board control of all
group companies.

Lonrho acquired 45% of SAILS and Board control in July 2007 for an investment of US$ 6 million. Since Lonrho's investment, SAIL's operations have expanded and the fleet has grown from two to five vessels in service, which will be increased to seven vessels by early December.

Lonrho increased its shareholding in SAILS under the terms of a convertible
working capital facility that had been put in place.

David Lenigas, Lonrho's Executive Chairman commented:

'SAILS is a core Lonrho business with significant potential. Strong demand from customers has led to the recent increase in vessels in service and we also
expect there to be further expansion of the SAILS fleet next year.

'Lonrho's increased equity in SAILS is another example of the Company's
objective to hold a majority stake in each of its subsidiaries.'

http://secure.financialmail.co.za/07/1012/moneyinvest/kmoney.htm

12 October 2007

LONRHO

Return of the great investor
By Sasha Planting

Once it was the only company that dared invest in Africa. But excessive ambition and rampant egotism led the once-mighty Lonrho into crippling debt, forcing executives to dump assets in a fire-sale that lasted a decade.
Today, a refocused Lonrho is again gobbling up assets across Africa, unashamedly aiming to become the pan-African conglomerate it was, according to executive chairman David Lenigas.
Last week Lonrho (previously Lonrho Africa) announced the acquisition of Zimbabwean companies Celsys, an ICT player, and chemical supplier Millpal - investments that were not well received by the British press.
These companies will be offered to LonZim, the 32m fund that Lonrho has established and plans to list later this month. It will be used to invest in hard assets such as property and hotels in Zimbabwe and neighbouring countries.
These deals follow September's announcement that Lonrho had acquired 51% of Mozambican microfinance bank Socremo and, before that, 100% of Swissta, a bottled-water manufacturer, and 65% of Bits & Bytes, Mozambique's biggest commercial IT distributor. Unremarkable deals perhaps, but to Lenigas they are just the beginning.
" Africa is being screwed by the financial institutions," he says. "Interest rates are exorbitant and the process to get a commercial loan is ludicrous. It is inhibiting Africa's growth. I'm excited about microbanking in Mozambique."

Lenigas plans to expand these businesses across Africa. "I'd like to see the microbanking operation in six countries within a year. And within the next few months we will establish water-bottling facilities in three or four countries, and will be in 30 countries within five years. We will focus on a premium brand for tourists and low-cost water for people who can't afford that."

Lenigas, an Australian miner, knows Africa intimately. He has run diamond fields in Angola (for the Kebbles) and gold mines in Ghana. " Africa is open for business - the development on infrastructure build is similar to that in Asia 20 years ago. I want to create an environment where international business can travel, stay and move product around. That's where we are investing - hotels, ports, low-cost airlines."

Lonrho's decision to stop disposing of assets and expand back into Africa came about at an extraordinary AGM in February 2006 when shareholders agreed to a new vision and focus for the company.

This followed a decade of disposals, including mines, hotels, motor dealerships, logistics and media operations, cotton, sugar, timber, textile and meat-processing operations. The buyers were Arab princes, Chinese opportunists and local management.

Lonrho was forced to start selling the family silver in 1992 by a crushing level of net borrowings - more than 1bn - and the process was accelerated in 1994 when German businessman Dieter Boch wrested power away from controversial tycoon Tiny Rowland, who had been CEO for 32 years.

In 1998 the mining operations were split off into what is now called Lonmin (today worth about 4,1bn). Lonrho Africa became little more than a shell, says Lenigas, with nothing but a majority shareholding in Mozambique hotel Cardoso, cash reserves of 18m and the "barmy army", a group of ageing but loyal shareholders with a passion for Africa.

They were game for another crack at Africa and recruited Lenigas to restructure the company and turn it around, which he has done with gusto. Board members are younger and more energetic. The only people remaining from Rowland's era are company secretary Jim Hughes, with Lonrho since 1974, and a handful of financial people, "because of Lonrho's complicated structure".

This week Lonrho announced that Geoffrey White, who joined the company in June as COO, has been made CEO. Lenigas remains executive chairman and will control the board and set strategy.

Though the new investment strategy seems much like the old, there are distinct differences, says Lenigas. "No-one could understand the old Lonrho because its focus was so broad - from hair gel to game reserves. We are clearly focused on infrastructure, transportation, natural resources and support services."

Another fundamental difference is that Lonrho will carry no debt at parent level, nor will it guarantee its subsidiaries' debts. Profitable operations will not support unprofitable ones.

A more subtle transformation is of Lonrho's business-at-all-costs culture, which earned Rowland the disdain of the British establishment and reverence throughout Africa. Twenty years later, Lenigas is committed to transparency and "acceptable capitalism".

"The way I see it," he says, "Lonrho did business the way that Africans did business. But I'm totally transparent - I'm not going to jail for anybody."

Lonrho's new investment spree kicked off with the acquisition of an 8,2% stake in Brinkley Mining, which has uranium operations in SA and interests in the DRC; and a 17% interest in Nare Diamonds, a production and exploration company based in SA.

In May last year Lonrho acquired 63% of the only deep-water port in Equatorial Guinea, which is set to become one of the wealthiest countries in Africa as its huge offshore oil reserves come on stream. The tax-free port is servicing the rapidly growing offshore oil industry, and Lonrho has recently completed a logistics facility for ExxonMobil's local operation.

The government owns the remaining 37% of the port. "I love governments as partners: we are less likely to be nationalised if there is a shake-up in government and policy," says Lenigas.

Lonrho also has a stake in Fly540, a low-cost airline based in Nairobi; and Norse Air, a charter business based in Johannesburg, which holds the contract to provide a cargo and passenger service for AngloGold Ashanti. "That's a gangbuster business [Fly540]. It has operated for less than a year, flies to more destinations than Kenya Airlines and now has partial international rights, so we can fly to the DRC and Sudan, and the business is profitable." Lonrho has an agreement with the Angolan government to launch Fly540 in Angola. "There is huge demand for internal flights in Africa, this is where huge growth will come from in the next decade."

In a similar vein, Lonrho acquired 45% and control of cargo-ship operator SA Independent Liner Services (Sails) for US$6m, with an option to increase its stake to 51% within the next five years. "Nobody is servicing the smaller ports up the east and west coasts and there is demand. Africa needs to get its products to market and I want new, modern, fast ships to ensure that I give the countries we service a competitive edge."

Funding these investments is not a problem at this stage, says Lenigas. "We have raised 53m for acquisitions in the past six months and will raise further capital when it is needed.

"Everyone talks the talk in Africa but no-one writes out the cheques. We get the good deals because we have the ability to pay and thus can act quickly."

At this point, though, it seems investors are acting on faith. The half-year results to March reflected impressive turnover of 10,4m (up from 600 000 in March 2006 and from 3,4m at the September year-end) - but the operating loss was 3m.

Says Lenigas: "We need capital to get the business up and running. But within the group certain businesses are already profitable, like Fly540 and Sails. But if we start Fly540 in Angola, it will require an investment of $6m- $9m and won't make money till the second year. And we are investing $71m in Luba Freeport.

"My gut feel is that if we stopped now, the business would be profitable within a year. But that's not what we are about - we are acquiring businesses as fast as possible that we think will make a difference to Africa."

Unfortunately, though, local shareholders are unable to benefit from Lenigas's optimism. Though the company is listed in London and Johannesburg, the local share is highly illiquid. "At some point we will have to address that; the only way is to do some large financing with those local institutions able to invest outside the country."

RNS Number:7716F Lonrho PLC
16 October 2007

Lonrho Plc
("Lonrho" or "the Company")

Lonrho Acquires 51% of KwikBuild

Lonrho (AIM: LONR) is pleased to announce that it has acquired 51% of KwikBuild Corporation Limited ("KwikBuild"), providers of innovative cost-efficient building solutions, for #2.1m of which #1m has been injected as working capital into the business. This acquisition is in line with Lonrho's strategy for investment in infrastructure in Africa.

KwikBuild uses lightweight building products for rapid and in-expensive construction and has completed projects in South Africa, Angola, Zambia and Mozambique. The existing production is located in Johannesburg, South Africa with a further plant being established in Port Elizabeth, South Africa.

All KwikBuild structures can be erected on any terrain by semi-skilled labour using a dry building process without the need for costly steel or wooden frames. The building materials are weatherproof, fire resistant and provide good insulation.

Lonrho's acquisition of KwikBuild allows for the immediate expansion of KwikBuild's successful South African business model, and KwikBuild will be able to capitalise on Lonrho's African network to access to new markets.

To date, KwikBuild has focussed on large-scale public sector projects. In South Africa, these include providing social housing to the Ministry of Housing; schools to the Ministry of Education, accommodating over 5,000 children; and medical clinics and laboratories for the Department of Health. Similar projects have been completed in Angola, Zambia and Mozambique.

KwikBuild structures are also being used by a leading telecom provider in South Africa, which required buildings to operate and manage their GSM cellular network. Leading mining companies have also used the Kwikbuild structures for their offices and accommodation.

In South Africa, there is immediate demand for 4 million low-cost homes. Presently, KwikBuild is negotiating with local authorities for the re-development of shanty towns.

David Lenigas, Executive Chairman of Lonrho Plc, commented:

"We expect significant uptake of KwikBuild systems across Africa in public works projects for housing, schools, hospitals and government offices. The
acquisition of KwikBuild by Lonrho is an essential part of our longer-term strategy to invest in responsible African infrastructure growth."

16.7m X trade at 50p......

Someone wants LONR stock :)

I don't blame them PP!

Lets hope the same buyer wants more, and Lonrho zooms past 50p and onwards to 60p

Agreed it looks like they have a fresh wind behind them and it may be that the new African funds that we mentioned previously may be the buyers. Lonr board may use strength in sp to raise further funds given the pace of acquisitions. Still it will keep the media busy.

When a fund sells 16million shares for 8 million quid and it doesnt effect the share price significantly is that a good sign ?

Yep, especially as the offer price was 47p and bid around 45p........

The fund was selling, and you normally lose 10% or more when trying to sell a big lump.

So really, what should have been 16.7 sold at say 40p.........was actually 16.7m sold at 50p....

It shows great demand for stock..........

Lonrho PLC
23 October 2007
LONRHO PLC
(Lonrho or the 'Company')

Lonrho announces Ambassador Frances Cook to join Board

Lonrho (AIM: LONR), the conglomerate with a structured portfolio of African investments, is pleased to announce that it has appointed Ambassador Frances Cook as a non-executive Director of the company.

A former United States of America ambassador to Burundi, to Cameroon and to the Sultanate of Oman, Cook also held numerous senior positions in the Department of State, including Deputy Assistant Secretary of State for Refugee Programs, and Deputy Assistant Secretary of State for Political-Military Affairs, Consul General in Alexandria, Egypt, and Director for West Africa. She transitioned to the private sector in May 1999, where she runs an international business consulting firm, The Ballard Group llc. Cook currently serves on the boards of Alliant Techsystems (NYSE) and Global Options Group (NASDAQ), and the Corporate Council on Africa. She is a Senior Fellow at the Center for Naval Analyses, and a member of the Council on Foreign Relations. She was educated at the Universities of Virginia and Harvard, and resides in Washington, D.C.

David Lenigas, Lonrho's Executive Chairman commented:

'I am delighted that Ambassador Cook is joining the Lonrho Board. She brings unparalleled experience of Africa, its politics and opportunities. It is our stated intention to increase the number of influential non-executives on the Board. Ambassador Cook is the first of these appointments and her expertise and guidance will help to ensure Lonrho's transparent and effective growth throughout Africa.

Doesn't seem to have affected the share price today - I thought this looked like a key appointment! But then I guess it will filter through in deals down the line.

RNS Number:2433G
Lonrho PLC 24 October 2007
LONRHO PLC
(Lonrho or the 'Company')

Lonrho announces expansion of Fly540 African fleet with
three BAE 146 aircraft

Lonrho (AIM: LONR), the conglomerate with a structured portfolio of African
investments, is pleased to announce that it is adding three BAE 146 aircraft to
its African fleet.

The aircraft, two BAE 146-300 100 seaters and one BAE 146-200 70 seater will be
delivered within the next eight weeks and will expand the Fly540 operational
network across sub-Saharan Africa.

These aircraft are part of a planned rollout of twelve aircraft for the Company
over the coming year. This will continue to develop the airline model from its
operational base in Kenya to other hubs across sub-Saharan Africa.

The Fly540 airline model is to create a mixed fleet of jets and turbo props that provide East to West and North to South pan African transport routes. The
Company deploys modern aircraft, operated to international standards.

David Lenigas, Lonrho's Executive Chairman commented:

"Fly540's success in Kenya has demonstrated the market demand for a quality
airline operating across the African continent. I am delighted that Fly540 is
now the choice of international carriers for flying their passengers within
Africa. Fly540 is set to fly to eight African countries early in 2008."

From http://www.iii.co.uk


Lonrho's long comeback

Edmond Jackson 05.11.07

One intriguing aspect of long-term investing is how various management styles (or fads, to hard-bitten cynics) fall in and out of fashion. On a 10 to 20-year view, the wheel can actually turn full circle. Take conglomerates, for example. Periodically, the concept of assembling a business group under a listed entity comes into vogue. The 1960s in particular, saw holding companies prosper and expand in both the

UK and US. Hanson Trust originated in Hanson White greeting cards to become a 1980s transatlantic colossus. When the takeover cycle is generally in full flow, listed companies are able to use their highly rated shares as currency to buy unquoted companies (typically on single figure P/Es) and literally manufacture earnings-per-share. They do indeed often achieve economies (such as providing development finance on better terms than a small firm can find on its own) although these tend to be less important than the key driver: raising equity at a relatively high value, based on expectations of ability to do deals, then buying into private businesses more cheaply. Such is a true money machine, for so long as the confidence lasts.

There are times when investors respond keenly to this approach, and at other times with derision. In the go-go 1980s, egged on by easy credit, many stockmarket entrepreneurs became over-stretched. The early 1990s recession exposed weaknesses in many of the conglomerates, with some imploding. 'Conglomerate' became a dirty word and 'focus' the new fashion. Investment bankers who earned fortunes, advising on takeovers, made another mint in fees from corporate restructurings.

Lonrho (LONR.L) - literally 'London-Rhodesia' - was one such company caught up in this classic boom-bust cycle. For many years its founder, Tiny Rowland, rode high both in the City of London and across Africa. He was much more than the average entrepreneur; indeed a charismatic leader who helped to give Lonrho's African firms an almost paternalistic reputation as an employer. Lonrho and Rowland eventually became victims of the conglomerate bust, with the tycoon ousted and seemingly endless strife between shareholder factions until 'Lonmin' was born from Lonrho's mining assets and - helped by soaring platinum prices - became an FTSE 100 company. The rump of Lonrho's other assets listed on AIM.

Making conglomerates work

These swings in business fashion blur a vital fact, relevant to assessing Lonrho currently: that some entrepreneurs can make the conglomerate model work well, especially in developing countries. For example, conglomerates have been a successful feature of various Far Eastern economies since their post-war period of rapid growth.

David Lenigas, the genial Australian resources entrepreneur and now chief executive of Lonrho since December 2005, is quite an example of 'Rowland re-born' in his expansive approach although he has the virtue of entrepreneurial drive without its abrasive edge. Such a hungry, yet sensitive approach ought to work well in deal-making situations, especially where African leaders need to feel confident about foreign investors.

Investors have cast off the 1990's cynicism and are entertaining the concept of a London-listed, African conglomerate, in a fresh light. Lonrho's AIM-listed shares more than doubled in value from 14p last year and at 48p are in a firm market, up 240%, which capitalises the group at £155 million. This equates perfectly with the early, halcyon years of a conglomerate expanding, when its shares attract a premium rating - partly linked to belief in the entrepreneur's ability to cut deals.

Lots of deals

A glance at Lonrho's announcements shows busy deal flow across Africa, in sectors as diverse as resources, infrastructure, transport, support services, hotels and leisure. Investors are looking to Lonrho's assets - and the expectation of further deals - as a benchmark for value, rather than the recent profit and loss account. Interims to end-March showed continuing operations losing £2.5 million on £3.7 million turnover, with acquisitions contributing £6.7 million turnover and a £0.5 million loss. Balance sheet shareholders' funds were £38.7 million. As with any acquisitive group, the combination of assets being integrated and shares in issue, are a moving feast. For the first half fiscal year, Lonrho had an average 224 million shares in issue, now 322 million after placing 45m shares with institutions at 38p in September to raise £17 million to fund group investments.

Separately, Lonrho's launch of a LonZim, a Zimbabwe investment fund, raised £32.3 million in July from the group's existing institutional shareholders, with Lonrho retaining a 39.4% stake. Given Zimbabwe's hyperinflation that may eventually result in economic crisis, this looks as high risk as emerging markets get. You could also say 'fortune favours the brave' and in its risk/reward evaluation, Lonrho has limited its own exposure. An announcement on 1 November revealed Lonrho has appointed Renaissance Capital, an emerging markets specialist, as placement agent to currently raise over £70 million for the fund, prior to an AIM listing.

Lonrho itself has yet to attract much interest among UK brokers (Company REFS cites 'no current forecasts') and the shareholder base is an eclectic set of international investors rather than pension funds, however it retains a keen following among 20,000 private investors since the Rowland era - who are now being rewarded by Lenigas as Lonrho shares rise.

Last July, substantial options - 5.2 million - were granted to board members and senior management at 44p, exercisable until 2012, so there is incentive to create further substantial upside.

The risks of rapid expansion in Africa

There are risks with rapid expansion by conglomerates, for example the possibility of accounting issues arising in specific subsidiaries although the typically eventual risk, of financial over-stretch, should be clear from the balance sheet. Despite the moving feast aspect of Lonrho's finances, its end-March balance sheet was satisfactory and has been enhanced by the recent equity placing.

The key issue for weighing up Lonrho shares is quite straightforward: does Africa represent a worthwhile investment proposition? Conservative investors may shudder at its reputation for Aids, tribal conflict and high-level corruption, however some who are more enterprising are re-appraising Africa's risk/reward profile in light of the commodities boom. Besides portfolio investors, you can see this in the way Chinese firms are scrambling to invest - well over £3 billion equivalent to date - in an effort to source natural resources essential for China's own economic growth. Annual Sino-African trade is now in the region of £30 billion. This is having an economic multiplier effect in Africa, for example improving infrastructure and jobs/incomes.

Rising soft commodity prices should also be helpful, at least for Africa's largely rural population, and the continent is starting to be seen as relatively more stable - with Algeria and Liberia now rated 'stable economies' by the World Economic Forum. Tourism is a major growth opportunity.

Amid doubts about US and European growth prospects - and fears the Far East exporting nations will experience some setback if Western demand eases - the hunt is on for fresh growth themes. 'Africa' may remain a preserve for enterprising investors but it does not require much of a shift in perception to result in the bull market you currently see in Lonrho shares. Direct equity plays on Africa that offer a spread of activities to reduce risk are scant, hence Lenigas's strategy to re-adopt the conglomerate model is timely. There are African investment funds but they have to find their own opportunities; which comes back to Lonrho.

It will be interesting to follow Lonrho as a test of the validity of conglomerates: whether Lenigas can avoid the mistakes of previous entrepreneurs, to deliver long-term sustainable value. Since Lonrho's strategy reflects his expansive personality and deal-making talent, there is a 'key person' risk with these shares.

An interesting and useful write up. I used to like reading Edmund Jackson's column when he wrote for the Sunday Telegraph and have seen some of his comments in the past on Citywire. He tends to have well balanced unexcitable views

Put this on both LEAD and LONR threads, all good news to those exposed to growth in Africa, LONR a lot more than LEAD, but its all relative.


http://allafrica.com/stories/200711020807.html

Africa: Africa Must Invest More in Telecommunications

Highway Africa News Agency (Grahamstown)

2 November 2007 David Kezio-Musoke

The 'Connect Africa' Summit that took place from 29 - 31 October 2007 ended in Kigali, Rwanda with a commitment of US$55 billion to investment and trade in Africa's emerging economies.

The chief of media relations and public information of the International Telecommunications Union (ITU), Sanjay Acharya told Highway Africa News Agency (HANA), that the ICT industry takes the lead of those commitments.

Meanwhile, president Paul Kagame of Rwanda said during his closing remarks that investment and trade as opposed to aid and charity must drive the transformation of Africa's economies.

Kagame called for a dynamic ICT sector to connect Africa to the global information superhighway.

"In order to realize this much-needed economic revolution, we have to forge productive relationships between government and business," Kagame said.

The Connect Africa Summit decided to bring forward ICT connectivity goals to 2012 to enable the achievement of the broader Millennium Development Goals (MDGs) by 2015.

Commitments were made to interconnect all African capitals and major cities with ICT broadband infrastructure and strengthen connectivity to the rest of the world by 2012.

By 2015, broadband and ICT services will be extended to all African villages. The Summit also sets out to meet the World Summit on the Information Society goals for capacity building, establishing an enabling environment for investment, and e-government services.

The role of governments in setting a level playing field for industry to compete was also highlighted.

It was also decided to ensure harmonization of the regulatory framework to stimulate cross-border integration in large-scale projects. Capacity building was identified as one key area for cooperation among all stakeholders.

Africa's mobile market has been the fastest-growing of any region over the last five years, and has grown twice as fast as the global market. Mobile phones overtook fixed lines in 2001 and now outnumber fixed telephone lines by nearly seven to one, with nearly 193 million mobile cellular subscribers in 2006. This figure is projected to grow to more than 270 million by the end of this year.

Stepping in to consolidate the mobile revolution in Africa, mobile operators of the GSM Association announced USD 50 billion in new investment over the next 5 years to expand and upgrade networks across the continent by 2012. This would provide mobile coverage to more than 90 per cent of the population.

The European Commission announced support for trans-African networks that facilitate interconnectivity.

An EU Trust Fund for Africa of almost 100 million Euros in grants and some 260 million Euros for loans has been established along with the European Investment Bank and ten EU member states for the period 2007-2008.

The fund, which will be substantially replenished at the end of 2008, will finance cross-border projects or national projects with a regional and continental impact that would include ICT. The Commission also announced a contribution of Euro 6 Million to support ITU's regulatory reform initiatives in Africa.

Success in mobile penetration is now set to be emulated in broadband connectivity in Africa, with new investment projects for ICT infrastructure.

"Africa is open for business," said ITU Secretary-General Hamadoun Tour "We are looking for investment through win-win partnerships in a viable marketplace by an expanding ICT industry." He added that wealth creation is key to achieving the MDGs. "This new investment in ICT infrastructure will lead to new jobs and overall economic growth," said Dr Tour

The representative of the UN Secretary-General Ban Ki-moon, Mr Sha Zukang, Under-Secretary-General of the UN Department of Economic and Social Affairs, said that innovative ways were needed to extend the reach of ICT to the most remote corners of the continent.

"I am confident that with the entrepreneurial spirit of the African private sector working with their international partners, the support of the international community and the commitment from governments, universal connectivity in Africa is no longer a utopian dream," he said.

The World Bank Group announced that it expects to double its commitment to ICT in Africa to US$ 2 billion by 2012 from its current investment programme of US$ 1 billion over the last five years. The financing will continue to promote private sector participation.

The African Development Bank (AfDB) also scaled up its investments in infrastructure, and expects to invest 60 percent of its concessional resources on infrastructure, including ICT, in the next three years.

The Bank committed close to US$ 65 million to two key regional infrastructure projects including RASCOM and the EASSy submarine cable.

Over one thousand participants, including six Heads of State, took part in the Connect Africa Summit.

The LonZim funds have now been raised and seem available for investment,with Lonr taking a 20% interest in LonZim and have power to manage the investments for a management fee. The pressure on Magabe has been stepped up following the statement by Merkel, the German Chancellor recently and could prove timely from the Lonzim viewpoint Lonr sp 46.5p.

Lonrho PLC
22 January 2008

22 January 2008

LONRHO PLC
('Lonrho' or the 'Company')

LONRHO's SHIPPING COMPANY 'SAILS'
RECEIVES 1,000 REFRIGERATED CONTAINERS
TO MEET DEMAND FROM SOUTH AFRICAN FRUIT EXPORTERS

Lonrho (AIM: LONR), the expanding conglomerate with a structured portfolio of
African investments, is pleased to announce that it's subsidiary, SA Independent
Liners Services Pty Ltd ('SAILS'), a shipping line based in South Africa, has
leased one thousand refrigerated containers for an eight year term.

The refrigerated containers are specialist units known as 'reefers' and provide
the ability to transport chilled or frozen goods. Following this transaction,
the Lonrho fleet of six vessels now has the ability to carry reefers at an
average of 30% of its storage capacity on each voyage, thereby meeting the
demand from the booming South African fruit growing market for delivering fresh
produce to the European markets. As a result of the transaction, SAILS has
become one of the leading shippers in this sector, and has secured US$ 14
million in new contracts for its shipping service to Europe.

The refrigerated units also provide a service on the return voyage, where they
can move medical and other chilled consumables being delivered to the African
market.

The containers have a contract value of US$ 28 million, based on an eight year
lease. They were ordered from Daikin Refrigerated Containers and manufactured to
order in Shanghai. The containers were delivered for use by the Lonrho fleet
during November and December 2007 and are now fully deployed.

David Lenigas, Lonrho's Chairman, stated:

'The ability to offer refrigerated containers to our customers is a niche, high
margin market, and strengthens SAILS business. The fact that all one thousand
units have been immediately put into service demonstrates the demand from this
sector for reefers. We are pleased to be supporting the expanding and important
South African fruit industry, and providing the services required to take
African goods to the European market in the best possible condition.'

sp 43p

sp 47.25p following a couple of announcements over its diamond and spring water businesses.

Reccomended in Moneyweek this week-end. Buy early on Monday before the herd.

Yes I noticed the mention as well. It was a general mention as part of an article on Africa (superior growth at inexpensive prices). For the very brave it also mentions LonZim (LZM). From memory I think Lonr owns 20% of LZM.