| Mon 29 Nov 2010, 12:53 | | LAF - Lonrho - Lonrho participation in private placement by LonZim Plc |
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LAF
LOLAF
LAF - Lonrho - Lonrho participation in private placement by LonZim Plc
Lonrho Plc
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho" or "the Company")
Lonrho participation in private placement by LonZim Plc
29 November 2010
LonZim Plc ("LonZim"), a 24.61% associate company of Lonrho, has today announced
that it has raised GBP4,987,904 (before expenses), by means of the issue of
17,813,944 new ordinary shares of GBP0.0001 each in LonZim ("Lonzim Shares") at
a price of 28p per LonZim Share (the "Placing") and that such shares will rank
pari passu with the existing LonZim Shares in issue.
The Placing has been principally conducted amongst new and existing
institutional shareholders in LonZim. Lonrho has participated in the Placing to
maintain its percentage shareholding of 24.61% by subscribing for 4,384,011 new
LonZim Shares at a cost of GBP1,227,523.
Given the commonality of executive directors between Lonrho and LonZim (being
David Lenigas, Geoffrey White, David Armstrong and Emma Priestley) the
participation in the Placing by Lonrho is a Related Party Transaction for the
purposes of the AIM Rules for Companies. Having consulted with Beaumont Cornish
Limited, the Nominated Adviser to the Company, the non-executive directors of
the Company and who are not Lonrho directors (being Ambassador Frances Cook
and Kiran Morzaria) consider the terms of Lonrho`s participation in the Placing
is fair and reasonable in so far as the shareholders of the Company are
concerned.
Kiran Morzaria, Non-Executive Director of Lonrho commented:
"Lonrho is delighted to see the institutional support from existing and new
shareholders in LonZim. After due consideration by the Lonrho non-executive
directors, they decided that it was appropriate for Lonrho to partake in this
placement and maintain its equity position in LonZim. We believe the LonZim
portfolio of businesses in Zimbabwe are experiencing the beginning of economic
recovery, resulting in strong reported growth in turnover. We continue to
believe that Zimbabwe has the potential once again to become a significant
economy in the region".
For further information:
Enquiries
Lonrho Plc
Kiran Morzaria / David Lenigas +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)
Roland Cornish +44 (0) 20 7628 3396
Rosalind Hill Abrahams
South African sponsor to Lonrho Plc
Java Capital (Proprietary) Limited
Date: 29/11/2010 12:53:02 Produced by the JSE SENS Department.
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