LONR Lonrho

 

TIDMLONR 
 
RNS Number : 3998R 
Lonrho PLC 
20 August 2010 
 

20 August 2010 
 
 
Lonrho Plc 
         ("Lonrho" or "the Company" or "the Group") 
 
 
 
    Lonrho Plc's Agribusiness Division Completes Acquisition of Fresh Direct 
 
Lonrho Plc (AIM:LONR) is pleased to announce that it has increased its holding 
in the issued share capital of Fresh Direct Ltd ("Fresh Direct") from the 
current 51 per cent  to 100 per cent. This completes the process of the 
acquisition of the minority stake in Fresh Direct as approved by shareholders at 
the Lonrho AGM held on 31st March 2010. 
 
In April 2008 Lonrho acquired a 51 per cent stake in Fresh Direct. Lonrho has 
now acquired from Oak Nominees Limited the remaining 49 per cent of the issued 
share capital in Fresh Direct that Lonrho did not previously own. The 
consideration payable has been translated into Sterling and a fixed number of 
Lonrho shares determined by reference to the formula approved by shareholders at 
the Lonrho AGM on the 31 March 2010. The consideration will be satisfied by the 
issue of 78,221,479 new ordinary shares of 1 pence in Lonrho ("Consideration 
Shares") at a price of 10.98p per share a total consideration of GBP8.58m. 
Application has been made for the Consideration Shares, which will rank parri 
passu with all existing ordinary shares, to be admitted to trading on AIM and 
dealings are expected to commence on or about the 26th August 2010. 
 
The Fresh Direct farming operations focus on volume production agreements with 
commercial farms, and are a result of a planting program that has installed 
irrigation capabilities and planted 165,000 fruit trees and established 
commercial fruit and vegetable projects with a current NPV in excess of GBP8.0 
million. The planting programs will commence commercial yields in 2011 which 
will determine future returns. The effect of the transaction on the Company will 
be to give Lonrho 100 per cent control of Fresh Direct. 
 
The Consideration Shares will be subject to a lock in for a period of twelve 
months from the date of completion of the transaction and thereafter will be 
subject to orderly market provisions. 
 
 
 
David Lenigas Executive Chairman stated: 
 
"Lonrho bought a controlling stake in Fresh Direct in April 2008, and has 
subsequently grown the company to provide significant fruit and vegetable output 
for the South African and export markets. The Board believed that 100 per cent 
ownership was important and very beneficial to shareholders and strategically 
builds the abilities for Lonrho Agriculture to provide a farm to consumer 
vertically integrated agricultural business". 
 
 
Enquiries 
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| Lonrho     |             | 
| Plc        |             | 
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| David      | +44         | 
| Lenigas,   | (0)20       | 
| Executive  | 7016 5105   | 
| Chairman   |             | 
+------------+-------------+ 
| Geoffrey   | +44         | 
| White,     | (0)20       | 
| Chief      | 7016 5105   | 
| Executive  |             | 
| Officer    |             | 
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| David      | +44         | 
| Armstrong, | (0)20       | 
| Finance    | 7016 5105   | 
| Director   |             | 
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| Charles    | +44         | 
| Vivian     | (0) 20      | 
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| Limited    |             | 
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This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCPGURURUPUGUU 
 

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