US$ 2.7 million settlement with Lonrho plc

RNS Number : 7796J

Cambria Africa PLC

22 July 2013

 



Cambria Africa plc
("Cambria" or the "Company")

Cambria achieves US$ 2.7 million settlement with Lonrho plc

·      Cambria has agreed a settlement with Lonrho plc (Lonrho) relating to various claims between both parties as well as a number of loan assets

·      As a result of this final settlement, Cambria will receive US$ 2.7 million

·      The settlement strengthens Cambria's balance sheet, frees up time and resources spent on these disputes and ends Lonrho's involvement with the Leopard Rock Hotel

·      Cambria's claims against Lonhro pertaining to leasing of aircraft to what were then Lonrho subsidiaries have been excluded from the settlement

Cambria (AIM:CMB) is pleased to announce it has achieved final settlement with Lonrho plc with regards to all on-going disputes, loan assets, and management contracts related to Lonrho.  As a result of this settlement, Cambria will receive from Lonrho US$ 2,665,000 dollars.

The settlement agreed relates to, among others, the Aldeamento Turistico de Macuti, S.A.R.L loans, the Churchill Estates (1995) (Private) Limited loan, the Lonrho Management Services Agreement, and the Hotel Refurbishment and Management Agreement. 

Only Cambria's claims against Lonhro related to three aircraft lease agreements with what were at the time subsidiaries of Lonrho have been excluded from the settlement. 

Other than any aircraft lease related claims, the settlement achieves that any residual issues related to Lonrho are now placed firmly in the past, ensuring Cambria can focus on the future.

The settlement achieved with Lonrho strengthens Cambria's balance sheet, frees up substantial amounts of management time and resources, and brings involvement of Lonrho Hotels at Cambria's Leopard Rock Hotel to an end. 

Moreover, the settlement makes funds available for further attractive investment opportunities in Cambria's Payserv and Millchem subsidiaries.

Lonrho was a substantial shareholder within the last 12 months and consequently the settlement is therefore deemed a related party transaction for the purpose of the AIM Rules for Companies. The directors, having consulted with WH Ireland, the Company's nominated advisor, consider the terms of the settlement fair and reasonable insofar as its shareholders are concerned.

Cambria's Chief Executive, Edzo Wisman, commented: "We are pleased to have worked effectively with Lonrho to make this settlement possible.  The disputes between the parties have been settled on terms satisfactory to both sides.  At Cambria our team looks forward to pursuing our growth strategy with this situation firmly behind us."

Astin Capital Management and StoneHedge Partners acted as financial advisors to Cambria.

About Cambria Africa plc

Cambria Africa plc, quoted on the AIM market of the London Stock Exchange, is a long term, active investment company, building a portfolio of investments primarily in Zimbabwe. 

Contacts
Cambria Africa plc	www.cambriaafrica.com
Ian Perkins	[phone]
Edzo Wisman	[phone]
WH Ireland Limited	www.wh-ireland.co.uk
James Joyce / Nick Field	[phone]

 

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