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LONRHO PLC

Release Date: 12/03/1998 14:22
Code(s): LON
Wrap Text
CLARIFICATION OF PREVIOUS ANNOUNCEMENT

ON 4TH MARCH, 1998, LONRHO POSTED A CIRCULAR TO .SHAREHOLDERS IN RELATION TO THE DEMERGER OF LONRHO AFRICA. IN THAT CIRCULAR ON PAGE ~ SHAREHOLDERS WERE INFORMED THAT, CONTRARY TO ADVICE GIVEN TO LONRHO BY LEADING TAX COUNSEL. THE INLAND REVENUE HAD PROFERRED AN OPINION WHICH (IF CORRECT) WOULD MEAN THAT SHAREHOLDERS WOULD BE TREATED AS HAVING RECEIVED INCOME FOR UK TAX PURPOSES AND WOULD BE TAXED IN THE SAME WAY AS IF THEY HAD RECEIVED A CASH DIVIDEND EQUAL TO THE VALUE OF THEIR LONRHO AFRICA SHARES. IN ADDITION, LONRHO WOULD HAVE A SUBSTANTIAL LIABILITY TO ACCOUNT FOR ADVANCE CORPORATION TAX.
YOUR BOARD IS PLEASED TO INFORM SHAREHOLDERS THAT SUBSEQUENT
TO POSTING THE DOCUMENTS RELATING TO THE DEMERGER AND FOLLOWING FURTHER CORRESPONDENCE THE INLAND REVENUE HAS CONFIRMED THAT IT IS NOW MINDED TO ACCEPT LONRHO'S ANALYSIS OF THE DEMERGER. 12 MARCH 1998

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