Lonrho Africa buys 34 pct stake in Mozambican mineral water company for US$ 1.2 million

24 April 2007

Maputo, Maputo, Mozambique, 24 April – The Lonrho Africa group has acquired a 34 percent stake in Sociedade de Águas de Mozambique (SAM), a major mineral water company, for US$ 1.2 million.

SAM bottles and distributes mineral waters and its Água da Namaacha brand has a 30 percent market share. The company sold around 2 million liters of mineral water in 2006 worth a total US$ 1.04 million and recorded annual growth of 100 percent between 2003 and 2005.

The firm recently invested US$ 1.2 million in a new bottling plant with a daily production capacity of 100,000 liters and storage facilities for 200,000 liters.

Lonrho’s buy-in to SAM boosts the pan-African investment firm’s presence in the continent’s bottled water sector in the wake of its acquisition of Swissta Water and the launch of Lonrho Springs, as it combines the management capacities of Swissta with SAM’s distribution network.

In a statement, Lonrho Africa, based in the United Kingdom, said it would promote the Água da Namaacha brand through a marketing campaign and seek to boost sales in central Mozambique, as well as in neighboring states. (macauhub)