LonZim PLC (AIM: LZM), the Lonrho (AIM: LONR) affiliated investment company focused on the recovery of Zimbabwe, said it plans to seek a secondary listing of its ordinary shares on the Zimbabwe Stock Exchange.
It has engaged Premier Banking Corp Ltd to act as financial adviser for the listing on the ZSE. It is expected that the listing will occur in the second half of 2010.

LonZim believes that the proposed ZSE listing will help strengthen the growth prospects of the company by facilitating direct investment in LonZim by Zimbabwe residents, corporations and financial institutions and by providing the company with additional opportunities to access capital for growth, its future expansion and the further implementation of its existing plans.

It also believes the listing would support Zimbabwe business as it rebuilds in line with LonZim's stated objective of playing an integral role in the revival of the Zimbabwe economy; It will also support the company's long-term growth and development and long term commitment to a strong Zimbabwean economy.

 LonZim will be the first public listing of shares on the ZSE since the introduction of US dollarisation brought increasing economic stability in Zimbabwe, as well as the first secondary listing of a European company on the ZSE in over a decade.

The group will make a further announcement when it has filed its application with the ZSE.

The board wishes to highlight to its shareholders that the proposed ZSE listing will involve fairly extensive preparatory work and, as the it is is subject to, amongst others, the approval of ZSE and relevant authorities there is no assurance that the ZSE listing will occur.

Chairman David Lenigas stated: "The proposed dual listing of LonZim in both London and Zimbabwe with full fungibility is an important step forward for the company and positions LonZim with strong foundations as the Zimbabwean economy recovers."

Earlier this week, LonZim reported a rise in turnover to £2.68 million in the six months to end-February from £495,000 in the equivalent period in the prior year reflecting the benefits of acquisitions completed last year, the effects of dollarisation and continued economic growth.

The pretax loss for the period of £2.38 million, compared with a £746,000 loss previously, reflects the ongoing development of the group's investments and is in line with expectations. As at 28 February 28 2010, the company had net assets of £32.77 million.

Seeds of economic recovery are evident in Zimbabwe. However, the progress remains difficult and the market comparatively small in relation to its previous volume, LonZim said in its statement.  Economic recovery from the chaos of hyperinflation will inevitably take time. Confidence needs to be rebuilt, stability in commercial transactions re-established and liquidity needs to be available once again in the banking sector for both commerce and individuals to drive the economy.

LonZim has built a portfolio of businesses in Zimbabwe that it believes are well positioned to benefit from the country’s economic recovery. The company considers investments in the tourism, accommodation, infrastructure, transport, commercial and residential property, technology, communications, manufacturing, retail, services, leisure, agricultural and natural resources sectors.

Lonrho holds a 24.61 percent stake in LonZim.

By Special correspondent