Lonrho to pay Cambria

Lonrho. As a result of this settlement, Cambria will receive from Lonrho US$ 2 665 000,” Cambria said.

The disputes relate to party contracts and obligations that arose after Lonrho, a former shareholder in Cambria Africa Plc (formerly LonZim Plc), divested from the group.
Lonrho sold its 23 percent in Cambria Africa in September last year.

The disputes resulted in both parties making claims and counter-claims.
The disagreements related principally to the payment of insurance proceeds, outstanding lease payments, maintenance reserves and condition two remaining aircraft after.
Cambria said the settlement strengthens its balance sheet, frees up time and resources spent on the disputes and ends Lonrho’s involvement in Leopard Rock Hotel, situated in the Eastern Highlands.

Further, the AIM-listed conglomerate said claims against Lonrho pertaining to leasing of aircraft to the then Lonrho subsidiaries have been excluded from the US$2,7 million settlement.

The settlement relates to loans for the Aldeamento Turistico de Macuti Hotel in Mozambique, the Churchill Estates (1995) (Private) Limited, the Lonrho management services agreement, and the hotel refurbishment and management agreement.

“Other than any aircraft lease related claims, the settlement achieves that any residual issues related to Lonrho are now placed firmly in the past, ensuring Cambria can focus on the future,” Cambria Africa added.

Moreover, Cambria Africa said, the settlement makes funds available for further attractive investment opportunities in Cambria’s Payserv and Millchem subsidiaries.
Lonrho was a substantial shareholder in Cambria within the last 12 months and consequently the settlement is therefore deemed a related party transaction for the purpose of the AIM rules for com-panies.

The directors, having consulted with WH Ireland, the company’s nominated advisor, consider the terms of the settlement fair and reasonable insofar as its shareholders are concerned.

“We are pleased to have worked effectively with Lonrho to make this settlement possible. The disputes between the parties have been settled on terms satisfactory to both sides.

“At Cambria our team looks forward to pursuing our growth strategy with this situation firmly behind us,” Cambria’s chief executive, Mr Edzo Wisman said.

Cambria Africa plc is a long term, active investment company, building a portfolio of investments primarily in Zimbabwe, but also in Africa.
Cambria owns 61 percent of Celsys, which specialises in security printing and provision of information technology and telecommunications.

It owns 100 percent of Millpal, 51 percent of pharmaceutical distributor Panafmed and 51 percent of mobile software producer ForgetMeNot.
Cambria, previously LonZim, held a 79 percent shareholding in beachfront-located Adeamento Turistico de Macuti Hotel in Mozambique and planned to invest the proceeds of that sale in Zimbabwe.

In addition, it owns 100 percent of electronic transfer solutions Paynet and the exquisite Leopard Rock Hotel in the Eastern Highlands.