Cambria Africa: CMB – Launches legal proceedings against Lonrho for US$10m

Cambria Africa, the LSE listed investment company  (market cap c£6m) that is building a portfolio of investments, primarily in Zimbabwe, has announced it has launched legal proceedings in the High Court against Lonrho Ltd (previously Cambria’s investment manager) for c US$10m (£6m).

Cambria’s formal proceedings seek to 1) rescind a settlement that it agreed with Lonhro in July 2013 for US$2.7m in relation to alleged fraud and misrepresentation (due to alleged fraudulent misrepresentations during the settlement negotiations), 2) make claims in relation to monies which are alleged to have been unlawfully transferred by Lonrho for the benefit for one of their subsidiaries in 2008, and 3) claiming US$8.8m in relation to three aircraft leased to subsidiaries of Lonhro, which reflect a variety of allegations (claims regarding to the leasing of aircraft to then Lonhro subsidiaries were specifically excluded from the July 2013 settlement).

Cambria also advises that it is making further investigations into “other possible instances of Lonrho’s mismanagement of Cambria”.

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