7th Dec 2007 10:41
Lonrho PLC07 December 2007 7th December 2007 LONRHO PLC (Lonrho or the "Company") Lonrho awarded 20% of LonZim Plc and exclusive management contract for the new Zimbabwean investment company to list on AIM The Board of Lonrho (AIM: LONR), the expanding conglomerate with a structuredportfolio of African investments, is pleased to announce that LonZim Plc(LonZim), which has been established by Lonrho for the principal purpose ofmaking investments in Zimbabwe, has successfully concluded its internationalroadshow and bookbuilding process. LonZim has raised £29.16m (US$ 60 million)at an issue price of 100p per share. Based on 36.45 million shares to be inissue upon Admission to AIM, including 7.3 million shares being received byLonrho in consideration of non competition clause, and the issue price of 100pper share, the market capitalization of LonZim would be GBP 36.5 million. It isexpected that the LonZim shares (Code : LZM) will commence trading on AIM on 11December 2007. LonZim has been established to make investments in Zimbabwe and the Beiratransport corridor in Mozambique. Highlights • LonZim will be the first Zimbabwean focused investment company listed on the London Stock Exchange • Lonrho is receiving a 20% free-carried interest (7.3 million shares) in LonZim in consideration of granting a non-compete clause in Zimbabwe • Lonrho will receive a 2% management fee on capital invested by LonZim, (subject to a minimum of $0.5m per annum) • The African specialist Lonrho management team will oversee all investments • LonZim will make investments in companies and sectors that the management believe will be best positioned to benefit should there be radical improvements in Zimbabwe's economy LonZim While the LonZim will not have a particular sectoral focus, utilising theinvestment skills of the Lonrho management team and their advisors, it will seekto identify individual companies in sectors best positioned to benefit shouldthere be radical improvements in Zimbabwe's economy. The Company may makeinvestments in the tourism, accommodation, infrastructure, transport, commercialand residential property, technology, communications, manufacturing, retail,services, leisure, agricultural and natural resources sectors. LonZim may also make investments in businesses outside Zimbabwe that have amajority of their operations within Zimbabwe. The Company will also look intoexpanding businesses and brands currently owned by Lonrho or in which Lonrho hasan interest in Zimbabwe. LonZim will only be able to achieve its investmentobjective in the event the Zimbabwean economy radically improves. Management Lonrho will provide LonZim with management services to oversee all transactionsand investments in the country. The Lonrho management team has a wealth ofskills and expertise in operating in Africa and an extremely successful trackrecord in operating under difficult conditions on the continent. The managementteam is well positioned to provide LonZim with specialist advice needed toinvest successfully under conditions characteristic of Zimbabwe at present. David Lenigas, Executive Chairman of Lonrho and LonZim commented: "We are extremely pleased that we have been able to raise the capital requiredfor LonZim to pursue its Zimbabwean focused investment strategy amongst currentuncertainty in the global equity markets. We believe that Zimbabwe offers aunique and considerable investment opportunity as a direct result of the currenteconomic climate and as a result of a lack of direct foreign investment. We believe that Zimbabwe will, in due course, regain its position as asignificant economic powerhouse in Africa. LonZim will be ideally placed toestablish itself as a major force in the Zimbabwean economy and represents aworldwide pool of institutional investors who understand the potential ofZimbabwe and its significance in Africa. LonZim will be the only Stock Exchangevehicle that has a pure investment focus on Zimbabwe. ENQUIRIESLonrho Plc +44 (0)20 7016 5105David Lenigas, Executive Chairman +44 (0)7881 825 378Geoffrey White, Chief Executive Officer +44 (0)7717 307 308Emma Priestley, Executive Director +44 (0)7867 785 177 Pelham PRCharles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297903James MacFarlane +44 (0) 20 7743 6375 +44 (0) 7841 672 831 Collins Stewart Europe: NOMAD to LonrhoJonny Sloan/Hugh Field +44 (0) 20 7523 8350 NOTES TO EDITORS: LonZim Management: The Board currently comprises five directors. Following Admission, the Companyintends to appoint additional directors, including a further independentnon-executive Director. Any such Directors may be nationals of Zimbabwe. TheBoard believes that their combined experience in working with projects asprincipals and as advisers across Africa will give then the skills and contactsto implement LonZim's strategy successfully. The Directors of LonZim are as follows: David Lenigas (age 46), Executive Chairman David Lenigas holds a Bachelor of Applied Science Degree in Mining Engineering.Currently the Executive Chairman of Lonrho Plc, he has extensive experienceoperating in the public company environment. Mr Lenigas is also Chairman ofLeni Gas & Oil Plc, Chairman of Templar Minerals Limited, Chairman of NareDiamonds Limited and is a non-executive director of Mediterranean Oil & Gas Plc,Global Coal Management Plc and River Diamonds UK Plc. Emma Priestley (age 34), Executive Director Emma Priestley joined Lonrho as an Executive Director after working ininvestment banking for 5 years following a career as a mining engineer. She hasa background in mining and financial services having worked with consultants IMCMackay & Schnellmann, investment bank CSFB, advisers VSA Resources and, mostrecently, Ambrian Partners, where she worked as corporate broker and adviser.Ms Priestley is a graduate of Camborne School of Mines, a Chartered MiningEngineer and Chartered Mineral Surveyor. Geoffrey White (age 46), Executive Director Geoffrey White, Lonrho's Chief Executive Officer, has over 25 years ofexperience working in senior management roles with Thomas Tilling Plc, BTR Plcand Dee Corporation Plc. During the past four years he has worked for theprivate office of His Highness Sheikh Khalifa Al Thani in London. Mr Whitepreviously worked with Hilton International, Ford Motors (PAG), PratonInternational GmbH, FFS Refiners (Pty) Ltd, Sengamines Sarl, Oryx NaturalResources, African Mining Investments Limited and Pegasus Energy Limited. Jean Ellis (age 37), Finance Director Jean Ellis, Lonrho's Financial Director, is a Chartered Accountant and CharteredTax Advisor and holds an insolvency practitioners licence. Whilst undertakingthe role of Finance Director, she will remain as a partner in the regional firmof Chartered Accountants, Duncan Sheard Glass ("DSG"). Prior to returning toprivate practice in 2002, Ms Ellis was Group Financial Controller and Taxmanager with Lonrho Africa Plc and also holds a number of directorships for itssubsidiary companies. Since joining DSG in 2002, Ms Ellis has continued to actas a consultant to Lonrho remaining closely involved in all areas of the Group'sfinance and taxation. Ms Ellis has a Bachelor of Arts Degree in Pure Mathematicsfrom Liverpool University. Paul Herber (age 44), Non-Executive Director Paul is an investment manager and stockbroker with more than 20 years ofexperience in global stock markets, following 3 years in the oil industry.Formerly with SGHambros, NatWest and Carr, he is now with bespoke boutique SavoyInvestment Management Limited (with in excess of £1.2 billion of private andinstitutional funds under management), regulated both by the FSA in London andthe FSB in Johannesburg. He has a broad pan-African Clientele alongside hisdomestic UK, European and Bermudian business. About LONRHO: Lonrho Plc is an expanding conglomerate that is rapidly growing a successfulbusiness throughout Africa. The Company is listed on the London AIM stockexchange (LONR). Lonrho is strategically focused on the development of businessopportunities in infrastructure, transportation, support services and naturalresources. The Company has over 20,000 shareholders and substantialinstitutional backing to support its mandate to build a profitable business thatplays a fundamental role in the development of the African economy. Since 2006, the Company has invested in or acquired control of: - Hotel Cardoso - www.hotelcardoso.co.mz- Lonrho Mining - www.lonrhomining.com- Luba Freeport - www.lubafreeport.com- Fly540 - www.fly540.com- Norse Air - www.norseair.co.za- Swissta Holdings - www.swissta.com- SA Independent Liner Services - www.saliners.com- Bytes and Pieces- Celsys Limited - www.celsys.co.zw Disclaimer Some of the information contained in this press release contains forward-lookingstatements. Forward-looking statements are based on our current expectations andassumptions regarding our business, the economy and other future conditions.Because forward-looking statements relate to the future, they are, by theirnature, subject to inherent uncertainties, risks and changes in circumstancesthat are difficult to predict. We caution you not to rely on any such statementsas statements of historical fact or as guarantees or assurances of futureperformance. We undertake no obligation to publicly update or revise andforward-looking statements. This press release is not for distribution (directly or indirectly) in or to theUnited States, Canada, Australia or Japan. This press release is not an offer ofsecurities for sale in or into the United States, Canada, Australia or Japan. This press release does not constitute or form part of any offer or invitationto sell or issue, or any solicitation of any offer to purchase or subscribe for,any Shares in the Company or LonZim or any other securities, nor shall it (orany part of it), or the fact of its distribution, form the basis of, or berelied on in connection with, any contract therefore. In particular, this pressrelease refers to certain events as having occurred which have not occurred atthe date it is made available but are expected to occur prior to Admission. Thisdocument is not a prospectus and no person should subscribe for or purchase anyshares referred to in this document except on the basis of the information inthe LonZim Admission Document. The securities described herein have not been, and will not be registered underthe United States Securities Act of 1933, as amended (the "Securities Act"), orany U.S. state securities laws. They may not be offered or sold in the UnitedStates, except in transactions not subject to or exempt from, the registrationrequirements of the Securities Act and applicable state laws. The Company doesnot intend to register any portion of the securities in the United States or toconduct a public offering of securities in the United States. No money,securities or other consideration is being solicited and, if sent in response tothe information contained herein, will not be accepted. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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