11th Aug 2009 07:00
11th August 2009
LONRHO PLC
("Lonrho" or the "Company")
Lonrho issues new shares for cash to meet scheduled Rollex payment
Lonrho is pleased to announce that it has issued 35,277,423 ordinary shares at a price of 7.047p(equating to 4.415% of the Company) to Altima Global Special Opportunities Master Fund Limited a fund managed by Altima Partners LLP for cash to meet an existing obligation under the purchase agreement of its 51% stake in Rollex (SA) Pty ltd ('Rollex') announced in April 2008.
Rollex, which was established in 1989, sources, packs and delivers fresh fruit, vegetables and fish produce from across Africa to its network of high profile retail clients, including Woolworths, Spar and PicnPay in South Africa, and Marks and Spencer, Tesco, Sainsbury, World Flowers, TFC Holland and Univeg in Europe.
The consideration for the 51% stake in Rollex was ZAR40 million (approximately US$5 million) in cash in April 2008. In addition the contract committed Lonrho to two further payments linked to the EBITDA performance of Rollex. The two payments, due respectively after the February 2009 and February 2010 audited accounts are produced are calculated as Rollex EBITDA multiplied by 5.3 and then multiplied by 12.75 per cent. The sum outstanding under the agreement for the first payment is South African Rand 33,551,372 (£ 2,486,000).
The shares will be issued by the Company Directors under the existing authority approved at the Company's EGM on the 9th December 2008.
David Lenigas, Executive Chairman stated :
Although Africa is less affected than the rest of the world, economic uncertainty remains evident in most markets. The Company had budgeted to meet this payment from existing funds, however the Board feels that it is prudent for the Company to maximise current cash reserves in the present economic climate.
Enquiries
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Lonrho Plc |
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David Lenigas, Executive Chairman |
+44 (0)20 7016 5105 |
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Geoffrey White, Chief Executive Officer |
+44 (0)20 7016 5105 |
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David Armstrong, Finance Director |
+44 (0)20 7016 5105 |
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Emma Priestly, Executive Director |
+44 (0)20 7016 5105 |
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Pelham PR |
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Charles Vivian |
+44 (0) 20 7337 1538 |
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+44 (0) 7977 297903 |
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James MacFarlane |
+44 (0) 20 7337 1527 |
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+44 (0) 7841 672831 |
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Beaumont Cornish Limited (Nomad) |
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Rosalind Hill Abrahams |
+44 (0) 20 7628 3396 |
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