5th Sep 2005 09:52
East African Holdings Ltd05 September 2005 EAST AFRICAN HOLDINGS LIMITED ("EAH" or the "Company") Further to our announcement dated 4 July 2005, EAH confirms that progress hasbeen made towards fulfilling the two stated pre-conditions to launching apartial offer for 60 per cent. of the issued share capital of Lonrho Africa plc("Lonrho"). The two pre-conditions are (a) the receipt of irrevocablecommitments from Lonrho shareholders amounting to at least 30 per cent. of theissued share capital of Lonrho to accept the partial offer and (b) satisfactorydue diligence. However, EAH is yet to secure any irrevocable commitments for its proposedpartial offer as key shareholders holding over 34.6% of Lonrho's issued sharecapital have confirmed that they would provide irrevocable commitments, but onlyprovided JO Hambro Capital Management, the largest shareholder in Lonrho, entersinto an irrevocable commitment to accept the partial offer. EAH is awaitingresponse from J O' Hambro Capital Management in this regard. It is worth noting that, should the largest shareholder give an irrevocablecommitment to accept the partial offer, other shareholders have indicated thatthey would also give an irrevocable commitment to accept the partial offer.Collectively this would amount to in excess of 50 per cent. of the issued sharecapital of Lonrho. EAH confirms that it will not make an offer for 100 per cent. of the issuedshare capital of Lonrho as this would be contrary to its goal of retainingLonrho's listing and working with Lonrho's over 20,000 shareholders to unlockthe additional value it believes Lonrho holds. EAH will also not consider acquiring a significant minority stake (of less than30 per cent.) of the issued share capital of Lonrho with a view to working withother key shareholders to effectively control Lonrho. EAH announces that if it is unable to obtain agreement from shareholders toenter into irrevocable commitments over at least 30 per cent. of the issuedshare capital of Lonrho by 10 September 2005, its interest in Lonrho will lapseand no partial offer will be made. The Directors of EAH accept responsibility for the information contained withinthis announcement and, to the best of their knowledge and belief (having takenall reasonable care to ensure that such is the case), the information containedwithin this announcement is in accordance with the facts and does not omitanything likely to affect the import of such information. Summary of Rule 8 of the City Code on Takeovers and Mergers (as required by Rule2.4(a) of the City Code) Under the provisions of Rule 8.3 of the City Code, any person who, alone oracting together with any other person(s) pursuant to an agreement orunderstanding (whether formal or informal) to acquire or control relevantsecurities of EAH or Lonrho, owns or controls, or becomes the owner orcontroller, directly or indirectly, of one per cent or more of any class ofsecurities of EAH or Lonrho is required to disclose, by not later than 12.00noon (London time) on the London business day following the date of the relevanttransaction, dealings in such securities of that company (or in any option inrespect of, or derivative referenced to, any such securities) during the periodto the date on which the offer becomes or is declared unconditional as toacceptances or lapses or is otherwise withdrawn. Under the provisions of Rule 8.1 of the City Code, all dealings in relevantsecurities of EAH or Lonrho by EAH or Lonrho, or by any of their respective "associates" (within the meaning of the City Code) must also be disclosed. If you are in any doubt as to the application of Rule 8 to you, please contactan independent financial adviser authorised under the Financial Services andMarkets Act 2000, consult the Panel's website at www.thetakeoverpanel.org.uk or contactthe Panel on telephone number +44 20 7638 0129; fax +44 20 7236 7013. Enquiries: Grant Thornton Corporate Finance Brian Stockbridge 0870 991 2553 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Lonrho