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LAF
LOLAF
LAF - LONRHO PLC - Lonrho Plc`s Agribusiness Division Completes Acquisition of
Fresh Direct
LONRHO PLC
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
(`Lonrho` or `The Company`)
Lonrho Plc`s Agribusiness Division Completes Acquisition of Fresh Direct
20 August 2010
Lonrho Plc (AIM:LONR) is pleased to announce that it has increased its holding
in the issued share capital of Fresh Direct Ltd ("Fresh Direct") from the
current 51 per cent to 100 per cent. This completes the process of the
acquisition of the minority stake in Fresh Direct as approved by shareholders at
the Lonrho AGM held on 31st March 2010.
In April 2008 Lonrho acquired a 51 per cent stake in Fresh Direct. Lonrho has
now acquired from Oak Nominees Limited the remaining 49 per cent of the issued
share capital in Fresh Direct that Lonrho did not previously own. The
consideration payable has been translated into Sterling and a fixed number of
Lonrho shares determined by reference to the formula approved by shareholders at
the Lonrho AGM on the 31 March 2010. The consideration will be satisfied by the
issue of 78,221,479 new ordinary shares of 1 pence in Lonrho ("Consideration
Shares") at a price of 10.98p per share a total consideration of GBP8.58m.
Application has been made for the Consideration Shares, which will rank parri
passu with all existing ordinary shares, to be admitted to trading on AIM and
dealings are expected to commence on or about the 26th August 2010.
The Fresh Direct farming operations focus on volume production agreements with
commercial farms, and are a result of a planting program that has installed
irrigation capabilities and planted 165,000 fruit trees and established
commercial fruit and vegetable projects with a current NPV in excess of GBP8.0
million. The planting programs will commence commercial yields in 2011 which
will determine future returns. The effect of the transaction on the Company will
be to give Lonrho 100 per cent control of Fresh Direct.
The Consideration Shares will be subject to a lock in for a period of twelve
months from the date of completion of the transaction and thereafter will be
subject to orderly market provisions.
David Lenigas Executive Chairman stated:
"Lonrho bought a controlling stake in Fresh Direct in April 2008, and has
subsequently grown the company to provide significant fruit and vegetable output
for the South African and export markets. The Board believed that 100 per cent
ownership was important and very beneficial to shareholders and strategically
builds the abilities for Lonrho Agriculture to provide a farm to consumer
vertically integrated agricultural business".
Enquiries
Lonrho Plc -
David Lenigas, Executive Chairman +44 (0)20 7016 5105
Geoffrey White, Chief Executive Officer +44 (0)20 7016 5105
David Armstrong, Finance Director +44 (0)20 7016 5105
Pelham Bell Pottinger
Charles Vivian +44 (0) 20 7861 3126
+44 (0) 7977 297903
James MacFarlane +44 (0) 20 7861 3864
+44 (0) 7841 672831
Beaumont Cornish Limited (Nomad)
Rosalind Hill Abrahams +44 (0) 20 7628 3396
Roland Cornish
South African sponsor
Java Capital
Date: 20/08/2010 12:39:01 Produced by the JSE SENS Department.
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