Mergers, Acquisitions and Financial Results

Lonrho has acquired 65% of one of Mozambique’s largest commercial Information Technology Solution Providers, Sociedade Comercial Bytes & Pieces, Limitada (“Bytes & Pieces”), which provides turnkey network solutions and maintenance and support to Mozambique businesses, NGO’s and Government organisations. Bytes & Pieces featured at 53 in the KPMG “Top 100 Companies in Mozambique” survey in 2004.

Bytes & Pieces is an authorized distributor of Dell equipment in Mozambique, providing Enterprise Solutions on a Dell hardware platform.

The IT company is a Microsoft Certified Partner and was awarded the System Builder Partner of the Year 2006 for East and Southern Africa. Bytes & Pieces is also an authorized distributor or value added reseller for CISCO Systems, MGE UPS Systems and Legrand networking products.

Lonrho is buying the stake in the Bytes & Pieces for $2.34m and will take up two thirds of the board positions. The two founders of Bytes & Pieces, Vijay Thadani and Veronica Miller, will together retain 35%. Bytes & Pieces recorded profits before tax of US$854,000 in 2006, on revenue of US$8.6 m.

The company now plans to expand into the region using the Bytes & Pieces model with a distribution division for high quality networking products and also with an Enterprise Solutions implementation division based upon the Dell hardware platform. The first countries in which the company will expand include South Africa, Zimbabwe, Zambia, Swaziland, Lesotho, Botswana, Namibia, Malawi and the Democratic Republic of Congo.

Lonrho Chairman and CEO David Lenigas commented “As the majority shareholder in Bytes & Pieces, Lonrho intends to further build on the IT company’s success and replicate the business model built up in Mozambique to the rest of Africa.”

“This acquisition is another example of Lonrho’s strategy of investing in African infrastructure. We are entering into this field as it services African business with high quality IT solutions, an essential tool for helping them to grow and prosper while keeping up with the rest of the world”