Wednesday 8th November 2006
Lonrho plans airline float
David Lenigas, entrepreneurial boss of Lonrho Africa, says the emerging conglomerate plans an AIM float in the New Year for Norse Air, the African air charter and leasing company where Lonrho has bought a 43 per cent controlling stake for £3.15 million.Norse, which works for the United Nations in the Congo and has clients including South Africa’s Treasury and Police, should double its revenues this year to $30 million (£15.8 million), argues Lenigas, and could repeat the performance again in 2007. Under the share deal, Lonrho, itself AIM-quoted, has the right to appoint a chairman to Norse Air, whose chief executive officer David Avnit and managing director Nadja Avnit will continue to run the business and are locked in as shareholders for another three years. The company came to Lonrho through broker WH Ireland, which had originally thought of floating it direct. Lonrho, which raised £12.8 million at 28p earlier this year, recently paid £1.05 million for 63 per cent of a freeport in Equatorial Guinea and spent £786,000 for a ‘controlling’ 49 per cent of Kenyan discount airline Fly540. Lenigas, who says all the planes will sport Lonrho insignia, claims a £20 million war chest and says African agribusinesses are next on his shopping list. The terms of any Norse Air float have not been worked out. Lonrho, with various balls in the air, could repay a speculative punt at 27.5p if they all land in the right place.
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