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LAF - Lonrho Plc - Placing of up to 118,000,000 new ordinary shares of the
company
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")
PLACING OF UP TO 118,000,000 NEW ORDINARY SHARES OF THE COMPANY
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO
AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES OR ANY OTHER JURISDICTION WHERE TO
DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
20 May 2011
Lonrho Plc ("Lonrho" or the "Company")
Placing of up to 118,000,000 new ordinary shares of the Company
Lonrho Plc is pleased to announce a placing of new ordinary shares in the
capital of the Company ("Placing") at 16.5 pence per share to raise gross
proceeds of GBP19.5 million. The Placing is limited to 118,000,000 new shares in
the capital of Lonrho ("Placing Shares") representing approximately 9.99 per
cent. of the current issued share capital of Lonrho.
Background to the Placing
Lonrho Plc is exclusively focused on the growth of sub-Saharan Africa. The Group
operates in seventeen countries in sub-Saharan Africa, concentrating on
providing the infrastructure and services required for the growing oil, mineral
and agricultural sectors in Africa.
The Group`s strategy is to continue to grow the business by further developing
each of its five strategic business divisions namely: agriculture,
infrastructure, transport, hotels and support services.
The local markets within which Lonrho operates are growing strongly and Lonrho
is well-positioned to win some significant new contracts, particularly in its
Agribusiness division. Such growth will require additional capital and also
provides the opportunity for complementary acquisitions consistent with Lonrho`s
strategy of further developing each of its divisions across sub-Saharan Africa.
Placing
The Placing is of up to 118,000,000 Placing Shares in the capital of Lonrho,
representing approximately 9.99 per cent. of the current issued share capital,
at a price of 16.5 pence per share to raise gross proceeds of GBP19.5 million.
The placing price is the middle-market closing price of a Lonrho share on 19 May
2011 and represents a premium of 0.4 per cent. to the five day average VWAP
price of 16.4 pence per Lonrho share. The placing is not underwritten.
The Placing Shares will, when issued, be credited as fully paid and will rank
pari passu in all respects with the existing ordinary shares of 1 pence each in
the share capital of Lonrho. Application has been made to the UK Listing
Authority and the London Stock Exchange for the Placing Shares respectively to
be admitted to the Official List and to be admitted to trading on the London
Stock Exchange`s main market for listed securities ("Admission"). It is expected
that Admission will take place and that dealings in the Placing Shares will
begin on 26 May 2011.
Members of the public are not eligible to take part in the Placing, which has
been made to (a) persons in member states of the European Economic Area (other
than the United Kingdom) who are "qualified investors" within the meaning of
article 2(1)(e) of the prospectus directive (directive 2003/71/EC) ("Qualified
Investors"), (b) in the United Kingdom, Qualified Investors who are (i)
"investment professionals" falling within Article 19(5) of the Financial
Services And Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO"), or
(ii) "high net worth companies, unincorporated associations etc" falling within
article 49(2)(a) to (d) of the FPO, and (c) to persons to whom it may otherwise
lawfully be communicated (all such persons together being referred to as
"relevant persons").
The issue of the Placing Shares is to be effected by way of a cashbox placing.
The Placing is conditional upon, inter alia, Admission becoming effective and on
the Agreement becoming unconditional and not being terminated in accordance with
its terms. The Placing will be capable of being terminated by the Company prior
to Admission at its absolute discretion if there has occurred any event or any
circumstance arises which, in the reasonable opinion of the Company, is or will
or is likely to be materially prejudicial to the outcome of the Placing.
No offering document or prospectus has been or will be prepared in relation to
the Placing and Placees` commitments will be made solely on the basis of the
information contained in this Announcement and any information previously
published by or on behalf of the Company by notification to a Regulatory
Information Service (as defined in the Listing Rules).
Enquiries
Lonrho Plc +44 (0) 7016 5105
David Lenigas
Geoffrey White
David Armstrong
Panmure Gordon +44 (0) 20 7459 3600
Tim Linacre
Dominic Morley
Adam Pollock
Hannah Woodley
Pelham Bell Pottinger +44 (0) 20 7861 3126
Charles Vivian
Important Information
Panmure Gordon (UK) Limited, which is authorised and regulated in the United
Kingdom by the Financial Services Authority, is acting exclusively for Lonrho
Plc and for no one else in connection with the Placing and will not be
responsible to anyone other than Lonrho for providing the protections afforded
to clients of Panmure Gordon (UK) Limited or for affording advice in relation to
the Placing, or any other matters referred to herein.
The Placing Shares have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "Securities Act") or under the
securities laws of any state or other jurisdiction of the United States and may
not be offered, sold, resold or delivered, directly or indirectly, in or into
the United States absent registration except pursuant to an exemption from, or
in a transaction not subject to the registration requirements of the Securities
Act. The Placing Shares are being offered and sold outside the United States
only in offshore transactions in accordance with Regulation S under the
Securities Act. No public offering of the Placing Shares is being made in the
United States. Persons receiving this announcement (including custodians,
nominees and trustees) must not forward, distribute, mail or otherwise transmit
it in or into the United States or use the United States mails, directly or
indirectly, in connection with the Placing.
Certain statements made in this announcement are forward-looking statements.
These forward-looking statements are not historical facts but rather are based
on Lonrho`s current expectations, estimates and projections about its industry,
its beliefs and assumptions. Words such as "anticipates," "expects," "intends,"
"plans," "believes," "seeks," "estimates," and similar expressions are intended
to identify forward-looking statements. These statements are not guarantees of
future performance and are subject to known and unknown risks, uncertainties and
other factors, some of which are beyond Lonrho`s control, are difficult to
predict and could cause actual results to differ materially from those expressed
or forecasted in the forward-looking statements. Lonrho cautions investors not
to place undue reliance on these forward-looking statements, which reflect the
view of Lonrho only as of the date of this announcement. The forward-looking
statements made in this announcement relate only to events as of the date on
which the statements are made. Lonrho will not undertake any obligation to
release publicly any revisions or updates to these forward-looking statements to
reflect events, circumstances or unanticipated events occurring after the date
of this announcement except as required by law or by any appropriate regulatory
authority.
Risk Factors
Investors and prospective investors should consider carefully whether an
investment in Lonrho is suitable for them in light of the information set out in
this announcement. The risks and uncertainties facing the Group are set out in
the prospectus dated 31 March 2011. Additional risks and uncertainties not
currently known to the Group or that the Group deems immaterial may also impair
its business operations. The Group`s business, prospects, financial condition
and results of operations could be materially and adversely affected by any of
these risks.
South African sponsor to Lonrho Plc
Java Capital
Date: 23/05/2011 07:30:01 Supplied by www.sharenet.co.za
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