[2008-02-22]  LonZim buys 79pc stake in tourism firm
LonZim, subsidiary to Lonrho has bought a 79 percent stake in Mozambican-based tourism institution, Aldeamento Turistico de Macuti (ATdeM) for US$4,25 million.

ATdeM owns the Estoril hotel sites on a 300 000-cubic metre plot, including 1,5km of beachfront, in central Beira on the Mozambique coast.

Reports from South Africa indicate that LonZim plans to demolish the two existing hotel properties and develop a luxury hotel on the site, to be operated and managed by an entity owned by Lonrho plc.

The remaining 21 percent shareholding in ATdeM is owned by the Mozambican government through an investment fund, and by the Beira municipality.

LonZim also agreed to meet the costs, up to a maximum of US$1,5 million of arrears, penalties and charges which were historically outstanding and payable to the Mozambican government in relation to the site.

LonZim executive chairperson Mr David Lenigas told South African media that Beira had always been seen as a region that would recover rapidly when Zimbabwe’s economy turned.

"This location, in central Beira, was historically very active when Zimbabwe had a thriving economy.

"It is clear that the Beira region will again become fundamental for servicing Zimbabwe’s demands for accommodation, office space and services.

"This is enhanced by the strength and stability of the Mozambican economy and the economic growth that is occurring within the Beira region of Mozambique," he said.

The acquisition was in line with Lonrho’s plans for Lonzim, as a separate and specific fund that Lonrho is establishing to build a portfolio of investments in Zimbabwe and neighbouring countries.

The acquisition comes a few months after Lonrho acquired an 80 percent stake in offshore company Blueberry International Services for US$5,45 million in cash from its parent company Lonrho Plc.

Blueberry controls 60 percent of Zimbabwe Stock Exchange-listed telecommunications operator Celsys, and 100 percent of Zimbabwean industrial chemicals manufacturer and distributor Gardoserve (trading as Millpal).

Lonrho’s acquisition of an interest in Celsys and Millpal represented its first investment in Zimbabwe following its launch.

LonZim’s primarily focus was on acquisitions in the key assets in the property, infrastructure, hotel and commercial sectors in Zimbabwe and neighbouring countries including the important access corridor to the coast at Beira in Mozambique.

Source: (c)copyright 2008 The Herald ltd.