Lonrho began operating in Africa in 1909 as the London and Rhodesian Mining Company.
Tiny Rowland took Lonrho's helm in 1961 and subsequently transformed the Company into a worldwide conglomerate. At its peak in 1989, Lonrho's profits were £272 million, up from a mere £158,000 in 1961, the year Rowland joined.
By 1995, Lonrho's African non-mining businesses had expanded into 15 sub-Saharan African countries, with approximately 90 operating companies involved in a wide range of business activities. The businesses were mainly operated on a geographical basis, with each country being managed by a locally-based chief executive reporting directly to Lonrho's head office in London.
In 1995, Lonrho decided to restructure these African non-mining businesses. An experienced central management team was established and given the responsibility for their operation. This management team completed a strategic review, resulting in five core activities being identified (motors, agribusiness, distribution, hotels and property and construction) and the restructuring of these businesses on an activity, rather than geographical, basis, took effect from 1997.
In 1998, these African non-mining businesses were demerged from Lonrho and a new company, Lonrho, was created. The original Lonrho name was subsequently changed to Lonmin.
In 2000, Lonrho began to refocus its investments and to follow a strategy of disposing of assets in Africa in order to pay off its debt and return value to shareholders.
Following the sale of Lonrho Hotels Kenya in 2005, the majority of Lonrho's assets had been sold and the disposal programme substantially completed. The Company's remaining assets comprised a 59% shareholding in Hotel Cardoso (link) in Mozambique, an industrial property in South Africa and cash resources of approximately £20 million. At this point Lonrho effectively became an investing company while continuing to seek opportunities to maximise shareholder value.
In 2005, Castle Acquisitions, the investment company, was formed to facilitate the demerger of Lonrho Trade & Finance Limited. The latter operates a defined benefit pension scheme in the UK and was a wholly owned subsidiary of Lonrho. The aim of the demerger was to unlock potential shareholder value inherent within the UK Scheme and to make this potential asset more visible and attractive to prospective purchasers. Castle Acquisitions is now listed on AIM.
Following the appointment of David Lenigas as Chief Executive Officer on 21 December 2005, the Board, supported by a number of Lonrho's major shareholders, concluded that it would be in the best interests of shareholders to use the Company's strong cash position to re-establish a significant presence in Africa.
Lonrho in 2009 continues to invest in over 17 countries across Africa in 5 core business sectors: Infrastructure, Trasportation, Hotels, Agribusiness and Support Service.