It is intended that LonZim, with Lonrho's brokers Collins Stewart, will seek to raise a minimum of 50 million sterling. Lonrho will manage and hold a sizeable stake in the company.
David Lenigas, Lonrho's executive chairman and chief executive, commented: "Whilst there are clearly risks associated with investing in Zimbabwe, I believe that the opportunities for economic growth in the country are enormous and the intended establishment of LonZim offers Lonrho shareholders an opportunity to participate in this. However, the risk exposure for Lonrho shareholders is minimized by the nature of the investment through a separate listed vehicle.
"It is intended that LonZim will invest 80% in commercial property opportunities but will also look to identify Zimbabwean assets and companies with the potential to grow rapidly with the benefit of investment and international management expertise. Lonrho has the people in place to offer support and advice to LonZim and the projects it invests in.
"Lonrho believes that there is a significant opportunity in the Zimbabwean market, which has suffered from severe underinvestment. This potentially offers significant upside. Lonrho is committed to investing in Africa to develop infrastructure and projects that support the growth of African business. As such I believe that cautious and well informed investment in Zimbabwe will serve these purposes and offer returns not only to Lonrho and Lonzim shareholders but also Zimbabwean business and the Zimbabwean economy.
"I strongly believe that the best way to encourage economic growth within a country and nurture the development of a strong infrastructure and business culture is through private, foreign direct investment and this vehicle fits with that principle."
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Publisher: I-Net Bridge
Source: I-Net Bridge
