27th Dec 2006 07:01
Lonrho Africa PLC27 December 2006 Lonrho Africa Plc ("Lonrho Africa" or "the Company") Notice of Extraordinary General Meeting Lonrho Africa has today posted a circular to its shareholders convening anextraordinary general meeting of the Company ("EGM"). The purpose of the EGM isto grant the Directors the authority to increase the authorised share capital ofthe Company from £3,000,000 to £4,000,000 by the creation of an additional100,000,000 new ordinary shares of 1p each representing approximately 45 percent of the current issued share capital of the Company, and to grant furtherauthorities to the Directors to allot equity securities and to disapplypre-emption rights. After five years of pursuing a policy of disposing of assets to pay off debt andreturn value to shareholders, the Company has spent 2006 investing across theAfrican continent with a focus on early- to mid-stage developing projects in theinfrastructure, natural resources and hotel and leisure sectors. The Board is continually reviewing financing options for the Company and, atthis stage, believes that in some cases working capital is best obtained throughthe issue of equity rather than commercial bank debt. The authorities beingsought will enable the Board to take advantage of market conditions, as and whenthey present themselves, to raise working capital through the fresh issue ofequity. The Board considers that it is in the best interests of the Company andits shareholders generally that the Company should have the flexibilityconferred by such authorities. This will enable Lonrho Africa to maintain a balance of funds for existing andnew investments in Africa, in particular with regard to Luba Freeport which isbeing developed into a first class shipping hub servicing the needs of theburgeoning oil industry in West Africa and the Hotel Cardoso in Mozambique. Thelatter has recorded its best year's trading for eight years, due to higherlevels of revenue, occupancy and average room rates following an initialrefurbishment programme. Further investment and expansion will see the hotelflourish into one of the premier hotels and conference centres in Mozambique. The EGM will be held at the offices of Strand Partners Limited, 26 Mount Row,London W1K 3SQ at 11 a.m. GMT on Friday 19 January 2007. Pursuant to Rule 20 of the AIM Rules, a copy of the circular and notice of EGMare available for inspection at the Company's registered office: J H HughesC/o DSGCastle Chambers43 Castle StreetLiverpool L2 9TL Further information please contact: Eden Mendel, Cardew Group M: 07887 676 603 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Lonrho