LONRHO has continued its disposal programme with the sale of its half
share in Krupp Lonrho, a German-based metals trading group.
It will receive #110m cash for the holding which was acquired in 1988
for #78m. The buyer is the holder of the other 50%, the newly merged
steel group Fried Krupp AG Hoesch-Krupp.
Completion is expected before the end of August and the cash will be
used to reduce Lonrho's borrowings
The group consolidated after tax profits of #2.7m from the investment
in the year to last September, when its share of the net assets of the
company amounted to #30.7m.
The sale is the latest in a series of deals Lonrho has undertaken to
cut its bank borrowings which had fallen to below #600m before the
latest sale was announced.
Within the past year, the group has sold VAG, the UK importer of
Volkswagen and Audi cars for #124m, completed the sale of Gewog, a
German holding company, and disposed of The Observer newspaper to The
Guardian for #27m.
It has also raised #80m through a rights issue. Last month, Lonrho
announced a 74% increase in half-year pre-tax profits to #87m from #50m
previously.
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