Lonrho buys control of Zim firms

JOHANNESBURG – Investment firm Lonrho Plc has taken control of Zimbabwean telecoms firm Celsys and chemicals manufacturer Gardoserve by buying an 80 per cent stake in Blueberry International for US$5,45 million in cash, the firm said yesterday.

The acquisition is the first by a foreign firm after Zimbabwe’s parliament passed a law last week requiring that local owners have majority control of foreign-owned firms. The bill is expected to sail through the upper Senate, to await President Robert Mugabe’s signature.Lonrho did not say how the new bill would affect its operations in the southern African country.Lonrho, based in South Africa and listed in London, said it believed that cautious and well-informed long-term investment in Zimbabwe would offer returns.”Lonrho believes that there is a significant opportunity to bring foreign direct investment to grow existing businesses in Zimbabwe.Now is the time to be establishing and supporting businesses that can develop.The economy has suffered from severe underinvestment,” Lonrho Executive Chairman David Lenigas said in a statement.Nampa-ReutersThe bill is expected to sail through the upper Senate, to await President Robert Mugabe’s signature.Lonrho did not say how the new bill would affect its operations in the southern African country.Lonrho, based in South Africa and listed in London, said it believed that cautious and well-informed long-term investment in Zimbabwe would offer returns.”Lonrho believes that there is a significant opportunity to bring foreign direct investment to grow existing businesses in Zimbabwe.Now is the time to be establishing and supporting businesses that can develop.The economy has suffered from severe underinvestment,” Lonrho Executive Chairman David Lenigas said in a statement.Nampa-Reuters