Lonrho Raises $4.2 Million To Make Rollex Payment

African investment company Lonrho PLC (LONR.LN) Tuesday said it raised money from a shareholder to make a payment for its acquisition of a majority stake in an African fruit and vegetables company, after deciding it was more prudent to hang on to its own cash.

Lonrho Chairman David Lenigas said although Lonrho had budgeted for the 33.6 million South African rand payment ($4.2 million) it decided it was more prudent to maximize its existing cash resources in the present economic climate.

Lonrho said it issued 35.3 million new shares to a fund controlled by Altima Partners LLP at 7.047 pence a share, an 8% discount to Monday's closing price, to meet the payment.

Lonrho agreed to pay ZAR40 million ($5 million) for a 51% stake in Rollex (SA) Pty. Ltd. in April last year. Two further payments linked to Rollex's performance were due under the terms of the deal. The money raised will be used to make the first payment, Lonrho said.

Rollex sources, packs and delivers fresh fruit, vegetables and fish from across Africa to retailers including Tesco PLC (TSCO.LN) and J Sainsbury PLC (SBRY.LN).

Company Web site: www.lonrho.com

-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; jason.douglas@dowjones.com

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