LonZim raises £1.17 million working capital for Zimbabwe

The placing price of 27.5 pence represents a slight discount to the stock’s current value of 30.5 pence.

The proceeds are expected to provide working capital to LonZim investees to continue to run their businesses as economic growth returns to the important market sectors where LonZim operates.

“LonZim is well placed with its established portfolio of businesses, purchased over the past two years, to be a part of the economic recovery underway in Zimbabwe.

The LonZim businesses have retained quality staff, maintained their operations and been prepared for recovery and are now focusing on substantial growth for 2010,” said Lonzim David Lenigas.

Its current market capitalization stands at approximately a 62 percent discount to the acquisition cost for the portfolio of LonZim businesses, ignoring rises in Zimbabwean market values.

LonZim is building a portfolio of investments primarily in Zimbabwe.

It is holding stakes in domestic stock exchange listed conglomerate Celsys Ltd, payment services provider Paynet, ethanol supplier Millipal and pharmaceutical group Medsure.

It is also running and developing hotels in the country and, together with Lonrho, is launching operations of African low-cost airline Fly540 in Zimbabwe this year.