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Lonrho takes full ownership of African food supplier Rollex

AFRICA focused investment group, Lonrho, has upped its stake and taken full control of Rollex.

Rollex, based in South Africa, sources, prepares and packages food for transport to supermarkets across the globe, including the European consumer market.

Lonrho already holds a 51 per cent interest in Rollex, but has agreed a deal with the trustees of the De Robillard Family Trust to acquire the remaining 49 per cent. It will pay for the stake through the issue of approximately £42.12m shares at a price of 10.98 pence per share.

David Lenigas, Lonrho’s executive chairman said: “Rollex is one of the cornerstones of the Lonrho Agriculture division. Since Lonrho bought a controlling stake in April 2008, it has proven its value. Given the growth opportunities and new projects being initiated by the company in this specialised niche sector, the board believed that 100 per cent ownership was important and very beneficial to shareholders.”

He added: “The fact that Paul de Robillard has agreed to subscribe for Lonrho stock with appropriate lock-ins demonstrates his belief in the business and what it can achieve.”

Rollex reported a profit of ZAR16.6m (£1.5m) for 2009.