HomeBusiness DigestLonZim raises US$1,9m

Independent Comment: Reforms key to re-engagement

LONZIM, a long-term investment company with a diverse portfolio in the country, last week raised US$1,9 million for its operations in Zimbabwe.

The amount was raised last Friday through the placing of 4 255 525 shares at US$0,40 a share.
The money raised was meant to “ensure that the LonZim investee companies have access to working capital to continue to run their businesses in a commercial and professional manner as economic growth returns to the important market sectors where the firm operates”.
David Lenigas, executive chairman of LonZim, said they were growing their business in the country as the economy was showing signs of recovery.
“The signs of economic growth in Zimbabwe are now tangible,” said Lenigas. “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. LonZim businesses have retained quality staff, maintained their operations and been prepared for recovery and are now focusing on substantial growth for 2010.”
LonZim said shares were unconditionally placed pending their admission to trade on AIM. AIM is the London Stock Exchange’s international market for smaller growing companies.
Application was made for admission of the placing shares to trading on AIM.
Placing shares will altogether represent approximately 12% of the LonZim’s enlarged issued share capital and the number of shares in issue following completion of the placing would be 36 331 525.
LonZim, which was formed two years ago, has been growing its portfolio and now includes Fly540 Zimbabwe, a domestic low cost airline which is scheduled to fly the local skies next week.
Apart from the airline, LonZim also owns 51% of Panafmed after it invested US$2,3 million in the new start up business that imports, wholesales and distributes pharmaceutical products in the country.
LonZim also controls Leopard Rock Motel, Paynet, Cellsys and Millpal Chemicals.
In Mozambique, the company plans to develop the Don Carlos and the Estoril Hotel sites into a luxury hotels with conference facilities, a training centre, retail mall, offices and logistics units.
In October, LonZim announced that it was eyeing a local five-star hotel as it continues to add various investments under its portfolio.


Leonard Makombe

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