LAF - Lonrho Plc - Lonrho Plc expands its exclusive John Deere dealership

LAF - Lonrho Plc - Lonrho Plc expands its exclusive John Deere dealership       
network in Africa adding Tanzania and South Sudan to its current operations     
LONRHO PLC                                                                      
(Incorporated and registered in England and Wales)                              
(Registration number 2805337)                                                   
(Share code: LAF; ISIN number: GB0002568813                                     
("Lonrho" or "the Company")                                                     
LONRHO PLC EXPANDS ITS EXCLUSIVE JOHN DEERE DEALERSHIP NETWORK IN AFRICA        
ADDING TANZANIA AND SOUTH SUDAN TO ITS CURRENT OPERATIONS                       
Lonrho is pleased to announce that it has completed a share purchase            
agreement to acquire 100% of Lonagro Tanzania Limited and has also entered      
into a Memorandum of Understanding directly with John Deere to become the       
exclusive John Deere dealership in South Sudan.                                 
Lonrho is already the exclusive John Deere dealer for Mozambique and Angola,    
where it has seen strong demand for John Deere products as the mechanised       
farming market expands across Africa.                                           
Lonagro Tanzania is based in Dar es Salaam, the capital of Tanzania, and has    
the exclusive John Deere dealership for Tanzania. Tanzanian growth is           
expected to outperform both sub-Saharan Africa and global growth rates over     
the coming years with agriculture contributing 45% of GDP.                      
The market for agricultural equipment in Tanzania is already substantial and    
is set to increase rapidly as the Tanzanian Government is giving significant    
attention to the agriculture sector through the Southern Agricultural Growth    
Corridor of Tanzania (SAGCOT), a public-private partnership that aims to        
stimulate commercial scale agricultural productivity in Tanzania.               
The consideration for the acquisition of Lonagro Tanzania is USD 1.4 million    
(GBP0.9m), funded from the Company`s existing cash resources.                   
Lonrho is further pleased to announce that it has also entered into a           
Memorandum of Understanding directly with John Deere to become the exclusive    
John Deere dealership in South Sudan with a view to beginning operations in     
the second quarter of 2012.                                                     
South Sudan has a vast natural resource base and huge agricultural              
potential, with more than 90% of the land being suitable for farming.           
Significant foreign direct investment and international donor funding is        
forecast to support large scale agricultural development following the          
independence of South Sudan.                                                    
David Lenigas, Lonrho`s Executive Chairman commented:                           
"The expansion of Lonrho`s exclusive John Deere dealerships, adding Tanzania    
and South Sudan, builds on the Company`s excellent relations with John Deere    
and our continued aim to develop John Deere distribution in the agricultural    
markets in Africa. The established Lonrho / John Deere dealerships in           
Mozambique and Angola are demonstrating that the fully supported approach       
offering comprehensive maintenance, training and spare part support, and not    
just sales, delivers increased market share and long term growth for the        
businesses."                                                                    
Len Brand, Managing Director of John Deere (Pty) commented:                     
"John Deere are delighted to continue to work with Lonrho and further build     
the cooperation and relationship between the companies. The strong working      
relationship between John Deere and Lonrho benefits customers and               
demonstrates our mutual commitment to Africa."                                  
Enquiries                                                                       
Lonrho Plc     +44 (0) 20 7016 5105                                             
David Lenigas                                                                   
Geoffrey White                                                                  
David Armstrong                                                                 
Pelham Bell Pottinger    +44 (0) 20 7861 3232                                   
Gavin Davis                                                                     
Charles Goodwin                                                                 
Charlie Harrison                                                                
9 January 2012                                                                  
South African sponsor                                                           
Java Capital                                                                    
Date: 09/01/2012 09:00:01 Supplied by www.sharenet.co.za                     
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