LONDON, May 18, 2011 /PRNewswire/ -- Lonrho is pleased to announce that it has entered into a heads of terms to acquire a 51% equity interest in seafood wholesaler Fish On Line for ZAR 3.5 million (GBP0.3 million) in cash.
Fish On Line is based in Cape Town, South Africa, and operates bulk cold storage and fish processing facilities. The company operates as a wholesaler of quality seafood and imports and exports a wide range of seafood to and from markets globally. Products handled by Fish On Line include: Prawns, Salmon, Pangasius, Hake and Kingklip. Unaudited turnover for the year ended 28 February 2011 was ZAR 66 million (GBP5.8 million).
The parties expect to enter into a definitive share purchase agreement, which will also include a formula for the acquisition of the remaining 49% of the company, within the next few weeks. Following completion, Lonrho will provide working capital for the company to expand its existing operations and broaden its product range.
David Lenigas, Lonrho's Executive Chairman, commented:
"The acquisition of Fish On Line strengthens Lonrho's participation in the seafood sector and delivers beneficial synergies with Lonrho's Oceanfresh, which is seeing a strong demand for its sustainably sourced, wild caught fish range from retailers globally."
Enquiries: Lonrho Plc Geoffrey White, Chief Executive +44(0)20-7016-5105 Pelham Bell Pottinger James MacFarlane +44(0)20-7861-3232
SOURCE Lonrho Plc