Suspension of dealings in shares
February 26 2009 - 2:30AM
UK Regulatory
TIDMLZM TIDMLONR
RNS Number : 9146N
LonZim PLC
26 February 2009
26 February 2009
LonZim plc
("LonZim" or the "Company")
Suspension of dealings in the Company's shares
LonZim (AIM: LZM), which was established for the purpose of making investments
in Zimbabwe and the Beira corridor in Mozambique, announces that it has acquired
59,682,817 ordinary shares in Lonrho plc, the AIM traded conglomerate with a
structured portfolio of African investments ("Lonrho"). The Lonrho shares were
acquired over a period of approximately three months and include the acquisition
of 55,000,000 ordinary shares in a private placement by Lonrho at a price of 5p
per share announced on 11 November 2008. In aggregate, LonZim owns 7.81 per
cent. of Lonrho. The total consideration was approximately GBP2.95 million which
was funded out of the Company's cash resources.
Lonrho is a 24.25 per cent. shareholder in LonZim and provides LonZim with
management support services. LonZim has six directors. Of the four executive
directors of LonZim, three are executive directors of Lonrho and one is a
non-executive director of Lonrho. The acquisition of all Lonrho shares was
proposed and approved by the LonZim non-executive directors, the executive
directors having recused themselves.
The acquisition of Lonrho shares under the private placement arranged by Lonrho
constituted a related party transaction within the meaning of the AIM Rules but
disclosure was not made of this transaction in the necessary form at that time.
Further, the Company did not consult with Collins Stewart Europe Limited
("Collins Stewart"), its nominated adviser, on such transaction and in the
circumstances pertaining to it, Collins Stewart is not in a position to advise
the Company that the terms of the transaction are fair and reasonable insofar as
shareholders are concerned.
A review of the above transactions will be undertaken by the Company and the
dealings in the Company's shares on AIM have been suspended pending the results
of this review.
Collins Stewart has informed the Company that it will resign as nominated
adviser and broker to LonZim. Collins Stewart was not consulted nor made aware
by LonZim of its intention to make these acquisitions, the basis therefore, nor
that the acquisitions had taken place.
Enquiries:
+------------------------------------+------------------------------------+
| LonZim Plc | +44 (0)20 7016 5105 |
| | |
+------------------------------------+------------------------------------+
| David Lenigas, Executive Chairman | +44 (0)7881 825 378 |
+------------------------------------+------------------------------------+
| Geoffrey White, Chief Executive | +44 (0)7717 307 308 |
| Officer | |
+------------------------------------+------------------------------------+
| Emma de Borchgrave, Executive | +44 (0)7867 785 177 |
| Director | |
+------------------------------------+------------------------------------+
| | |
+------------------------------------+------------------------------------+
| Pelham Public Relations | |
+------------------------------------+------------------------------------+
| Charles Vivian | +44 (0) 20 7743 6672 |
| | +44 (0) 7977 297903 |
+------------------------------------+------------------------------------+
| James MacFarlane | +44 (0) 20 7743 6375 |
| | +44 (0) 7841 672831 |
+------------------------------------+------------------------------------+
| | |
+------------------------------------+------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCCKAKBOBKKKBB
Lonrho (LSE:LONR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Lonrho (LSE:LONR)
Historical Stock Chart
From Jul 2023 to Jul 2024
