LONR Lonrho

RNS Number:4332J
Lonrho PLC
07 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 structured
portfolio of African investments, is pleased to announce that LonZim Plc
(LonZim), which has been established by Lonrho for the principal purpose of
making investments in Zimbabwe, has successfully concluded its international
roadshow 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 in
issue upon Admission to AIM, including 7.3 million shares being received by
Lonrho in consideration of non competition clause, and the issue price of 100p
per share, the market capitalization of LonZim would be GBP 36.5 million.  It is
expected that the LonZim shares (Code : LZM) will commence trading on AIM on 11
December 2007.

LonZim has been established to make investments in Zimbabwe and the Beira
transport 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 the
investment skills of the Lonrho management team and their advisors, it will seek
to identify individual companies in sectors best positioned to benefit should
there be radical improvements in Zimbabwe's economy. The Company may make
investments in the tourism, accommodation, infrastructure, transport, commercial
and residential property, technology, communications, manufacturing, retail,
services, leisure, agricultural and natural resources sectors.

LonZim may also make investments in businesses outside Zimbabwe that have a
majority of their operations within Zimbabwe. The Company will also look into
expanding businesses and brands currently owned by Lonrho or in which Lonrho has
an interest in Zimbabwe. LonZim will only be able to achieve its investment
objective in the event the Zimbabwean economy radically improves.

Management

Lonrho will provide LonZim with management services to oversee all transactions
and investments in the country. The Lonrho management team has a wealth of
skills and expertise in operating in Africa and an extremely successful track
record in operating under difficult conditions on the continent. The management
team is well positioned to provide LonZim with specialist advice needed to
invest 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 required
for LonZim to pursue its Zimbabwean focused investment strategy amongst current
uncertainty in the global equity markets. We believe that Zimbabwe offers a
unique and considerable investment opportunity as a direct result of the current
economic climate and as a result of a lack of direct foreign investment.

We believe that Zimbabwe will, in due course, regain its position as a
significant economic powerhouse in Africa. LonZim will be ideally placed to
establish itself as a major force in the Zimbabwean economy and represents a
worldwide pool of institutional investors who understand the potential of
Zimbabwe and its significance in Africa. LonZim will be the only Stock Exchange
vehicle that has a pure investment focus on Zimbabwe.

ENQUIRIES
Lonrho Plc                                                  +44 (0)20 7016 5105
David Lenigas, Executive Chairman                           +44 (0)7881 825 378
Geoffrey White, Chief Executive Officer                     +44 (0)7717 307 308
Emma Priestley, Executive Director                          +44 (0)7867 785 177

Pelham PR
Charles Vivian                                              +44 (0) 20 7743 6672
                                                            +44 (0) 7977 297903
James MacFarlane                                            +44 (0) 20 7743 6375
                                                            +44 (0) 7841 672 831

Collins Stewart Europe: NOMAD to Lonrho
Jonny Sloan/Hugh Field                                      +44 (0) 20 7523 8350


NOTES TO EDITORS:

LonZim Management:

The Board currently comprises five directors.  Following Admission, the Company
intends to appoint additional directors, including a further independent
non-executive Director.  Any such Directors may be nationals of Zimbabwe.  The
Board believes that their combined experience in working with projects as
principals and as advisers across Africa will give then the skills and contacts
to 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 experience
operating in the public company environment.  Mr Lenigas is also Chairman of
Leni Gas & Oil Plc, Chairman of Templar Minerals Limited, Chairman of Nare
Diamonds 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 in
investment banking for 5 years following a career as a mining engineer.  She has
a background in mining and financial services having worked with consultants IMC
Mackay & Schnellmann, investment bank CSFB, advisers VSA Resources and, most
recently, Ambrian Partners, where she worked as corporate broker and adviser.
Ms Priestley is a graduate of Camborne School of Mines, a Chartered Mining
Engineer and Chartered Mineral Surveyor.

Geoffrey White (age 46), Executive Director

Geoffrey White, Lonrho's Chief Executive Officer, has over 25 years of
experience working in senior management roles with Thomas Tilling Plc, BTR Plc
and Dee Corporation Plc.  During the past four years he has worked for the
private office of His Highness Sheikh Khalifa Al Thani in London.  Mr White
previously worked with Hilton International, Ford Motors (PAG), Praton
International GmbH, FFS Refiners (Pty) Ltd, Sengamines Sarl, Oryx Natural
Resources, 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 Chartered
Tax Advisor and holds an insolvency practitioners licence. Whilst undertaking
the role of Finance Director, she will remain as a partner in the regional firm
of Chartered Accountants, Duncan Sheard Glass ("DSG"). Prior to returning to
private practice in 2002, Ms Ellis was Group Financial Controller and Tax
manager with Lonrho Africa Plc and also holds a number of directorships for its
subsidiary companies. Since joining DSG in 2002, Ms Ellis has continued to act
as a consultant to Lonrho remaining closely involved in all areas of the Group's
finance and taxation. Ms Ellis has a Bachelor of Arts Degree in Pure Mathematics
from Liverpool University.

Paul Herber (age 44), Non-Executive Director

Paul is an investment manager and stockbroker with more than 20 years of
experience in global stock markets, following 3 years in the oil industry.
Formerly with SGHambros, NatWest and Carr, he is now with bespoke boutique Savoy
Investment Management Limited (with in excess of #1.2 billion of private and
institutional funds under management), regulated both by the FSA in London and
the FSB in Johannesburg. He has a broad pan-African Clientele alongside his
domestic UK, European and Bermudian business.

About LONRHO:

Lonrho Plc is an expanding conglomerate that is rapidly growing a successful
business throughout Africa.  The Company is listed on the London AIM stock
exchange (LONR). Lonrho is strategically focused on the development of business
opportunities in infrastructure, transportation, support services and natural
resources. The Company has over 20,000 shareholders and substantial
institutional backing to support its mandate to build a profitable business that
plays 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-looking
statements. Forward-looking statements are based on our current expectations and
assumptions regarding our business, the economy and other future conditions.
Because forward-looking statements relate to the future, they are, by their
nature, subject to inherent uncertainties, risks and changes in circumstances
that are difficult to predict. We caution you not to rely on any such statements
as statements of historical fact or as guarantees or assurances of future
performance. We undertake no obligation to publicly update or revise and
forward-looking statements.

This press release is not for distribution (directly or indirectly) in or to the
United States, Canada, Australia or Japan. This press release is not an offer of
securities 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 invitation
to 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 (or
any part of it), or the fact of its distribution, form the basis of, or be
relied on in connection with, any contract therefore. In particular, this press
release refers to certain events as having occurred which have not occurred at
the date it is made available but are expected to occur prior to Admission. This
document is not a prospectus and no person should subscribe for or purchase any
shares referred to in this document except on the basis of the information in
the LonZim Admission Document.

The securities described herein have not been, and will not be registered under
the United States Securities Act of 1933, as amended (the "Securities Act"), or
any U.S. state securities laws. They may not be offered or sold in the United
States, except in transactions not subject to or exempt from, the registration
requirements of the Securities Act and applicable state laws. The Company does
not intend to register any portion of the securities in the United States or to
conduct a public offering of securities in the United States. No money,
securities or other consideration is being solicited and, if sent in response to
the information contained herein, will not be accepted.



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            The company news service from the London Stock Exchange
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