Participation in placement (9303W)

TIDMLONR TIDMLZM

RNS Number : 9303W

Lonrho PLC

29 November 2010

29 November 2010 LONRHO PLC

("Lonrho" or the "Company") Lonrho participation in private placement by LonZim Plc

LonZim Plc ("LonZim"), a 24.61% associate company of Lonrho, has today announced that it has raised GBP4,987,904 (before expenses), by means of the issue of 17,813,944 new ordinary shares of GBP0.0001 each in LonZim ("Lonzim Shares") at a price of 28p per LonZim Share (the "Placing") and that such shares will rank pari passu with the existing LonZim Shares in issue.

The Placing has been principally conducted amongst new and existing institutional shareholders in LonZim. Lonrho has participated in the Placing to maintain its percentage shareholding of 24.61% by subscribing for 4,384,011 new LonZim Shares at a cost of GBP1,227,523.

Given the commonality of executive directors between Lonrho and LonZim (being David Lenigas, Geoffrey White, David Armstrong and Emma Priestley) the participation in the Placing by Lonrho is a Related Party Transaction for the purposes of the AIM Rules for Companies. Having consulted with Beaumont Cornish Limited, the Nominated Adviser to the Company, the non-executive directors of the Company and who are not Lonrho directors (being Ambassador Frances Cook and Kiran Morzaria) consider the terms of Lonrho's participation in the Placing is fair and reasonable in so far as the shareholders of the Company are concerned.

Kiran Morzaria, Non-Executive Director of Lonrho commented:

"Lonrho is delighted to see the institutional support from existing and new shareholders in LonZim. After due consideration by the Lonrho non-executive directors, they decided that it was appropriate for Lonrho to partake in this placement and maintain its equity position in LonZim. We believe the LonZim portfolio of businesses in Zimbabwe are experiencing the beginning of economic recovery, resulting in strong reported growth in turnover. We continue to believe that Zimbabwe has the potential once again to become a significant economy in the region".

For further information: Enquiries

 
Lonrho Plc 
Kiran Morzaria / David Lenigas     +44 (0)20 7016 5105 
                                   -------------------- 
Pelham Bell Pottinger 
                                   -------------------- 
Charles Vivian                     +44 (0) 20 7861 3126 
                                   -------------------- 
                                   +44 (0) 7977 297903 
                                   -------------------- 
James MacFarlane                   +44 (0) 20 7861 3864 
                                   -------------------- 
                                   +44 (0) 7841 672831 
                                   -------------------- 
 
Beaumont Cornish Limited (Nomad) 
                                   -------------------- 
Roland Cornish 
 Rosalind Hill Abrahams            +44 (0) 20 7628 3396 
                                   --------------------

This information is provided by RNS

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