Lonrho to buy CT-based build firm

Lonrho plc (LAF), the conglomerate with a structured portfolio of African investments, plans to buy a Cape Town-based prefabricated building firm for R25m, it said on Tuesday.

Arnott Panels (Pty) Ltd, which trades as Cool Maintenance, specialises in the manufacture and erection of cold storage units for the food processing, storage and other industries.

Cool Maintenance's accounts for the year ended 28 February 2007 reported a turnover of $7,1m and total assets of $3,5m and a profit before tax (PBT) of $921k. Management accounts for the year to the end of February 2008 show a turnover of $7,4m and PBT of $910k.

Lonrho will initially acquire a 51% stake for a payment of R12,75m. Lonrho will, over the next two years, acquire the remaining 49% in two equal tranches. The basic total purchase price is thus R25m. – I-Net Bridge

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