TIDMLONR
RNS Number : 0458H
Lonrho PLC
20 May 2011
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, IN OR INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED
STATES OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
20 May 2011
Lonrho Plc ("Lonrho" or the "Company")
Placing of up to 118,000,000 new ordinary shares of the
Company
Lonrho Plc is pleased to announce a placing of new ordinary
shares in the capital of the Company ("Placing") at 16.5 pence per
share to raise gross proceeds of GBP19.5 million. The Placing is
limited to 118,000,000 new shares in the capital of Lonrho
("Placing Shares") representing approximately 9.99per cent. of the
current issued share capital of Lonrho.
Background to the Placing
Lonrho Plc is exclusively focused on the growth of sub-Saharan
Africa. The Group operates in seventeen countries in sub-Saharan
Africa, concentrating on providing the infrastructure and services
required for the growing oil, mineral and agricultural sectors in
Africa.
The Group's strategy is to continue to grow the business by
further developing each of its five strategic business divisions
namely: agriculture, infrastructure, transport, hotels and support
services.
The local markets within which Lonrho operates are growing
strongly and Lonrho is well-positioned to win some significant new
contracts, particularly in its Agribusiness division. Such growth
will require additional capital and also provides the opportunity
for complementary acquisitions consistent with Lonrho's strategy of
further developing each of its divisions across sub-Saharan
Africa.
Placing
The Placing is of up to 118,000,000 Placing Shares in the
capital of Lonrho, representing approximately 9.99 per cent. of the
current issued share capital, at a price of 16.5 pence per share to
raise gross proceeds of GBP19.5 million.The placing price is the
middle-market closing price of a Lonrho share on 19 May 2011 and
represents a premium of 0.4 per cent. to the five day average VWAP
price of 16.4 pence per Lonrho share. The placing is not
underwritten.
The Placing Shares will, when issued, be credited as fully paid
and will rank pari passu in all respects with the existing ordinary
shares of 1 pence each in the share capital of Lonrho. Application
has been made to the UK Listing Authority and the London Stock
Exchange for the Placing Shares respectively to be admitted to the
Official List and to be admitted to trading on the London Stock
Exchange's main market for listed securities ("Admission"). It is
expected that Admission will take place and that dealings in the
Placing Shares will begin on 26 May 2011.
Members of the public are not eligible to take part in the
Placing, which has been made to (a) persons in member states of the
European Economic Area (other than the United Kingdom) who are
"qualified investors" within the meaning of article 2(1)(e) of the
prospectus directive (directive 2003/71/EC) ("Qualified
Investors"), (b) in the United Kingdom, Qualified Investors who are
(i) "investment professionals" falling within Article 19(5) of the
Financial Services And Markets Act 2000 (Financial Promotion) Order
2005 (the "FPO"), or (ii) "high net worth companies, unincorporated
associations etc" falling within article 49(2)(a) to (d) of the
FPO, and (c) to persons to whom it may otherwise lawfully be
communicated (all such persons together being referred to as
"relevant persons").
The issue of the Placing Shares is to be effected by way of a
cashbox placing.
The Placing is conditional upon, inter alia, Admission becoming
effective and on the Agreement becoming unconditional and not being
terminated in accordance with its terms. The Placing will be
capable of being terminated by the Company prior to Admission at
its absolute discretion if there has occurred any event or any
circumstance arises which, in the reasonable opinion of the
Company, is or will or is likely to be materially prejudicial to
the outcome of the Placing.
No offering document or prospectus has been or will be prepared
in relation to the Placing and Placees' commitments will be made
solely on the basis of the information contained in this
Announcement and any information previously published by or on
behalf of the Company by notification to a Regulatory Information
Service (as defined in the Listing Rules).
Enquiries
Lonrho Plc +44 (0) 7016 5105
David Lenigas
Geoffrey White
David Armstrong
Panmure Gordon +44 (0) 20 7459 3600
Tim Linacre
Dominic Morley
Adam Pollock
Hannah Woodley
Pelham Bell Pottinger +44 (0) 20 7861 3126
Charles Vivian
Important Information
Panmure Gordon (UK) Limited, which is authorised and regulated
in the United Kingdom by the Financial Services Authority, is
acting exclusively for Lonrho Plc and for no one else in connection
with the Placing and will not be responsible to anyone other than
Lonrho for providing the protections afforded to clients of Panmure
Gordon (UK) Limited or for affording advice in relation to the
Placing, or any other matters referred to herein.
The Placing Shares have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
"Securities Act") or under the securities laws of any state or
other jurisdiction of the United States and may not be offered,
sold, resold or delivered, directly or indirectly, in or into the
United States absent registration except pursuant to an exemption
from, or in a transaction not subject to the registration
requirements of the Securities Act. The Placing Shares are being
offered and sold outside the United States only in offshore
transactions in accordance with Regulation S under the Securities
Act. No public offering of the Placing Shares is being made in the
United States. Persons receiving this announcement (including
custodians, nominees and trustees) must not forward, distribute,
mail or otherwise transmit it in or into the United States or use
the United States mails, directly or indirectly, in connection with
the Placing.
Certain statements made in this announcement are forward-looking
statements. These forward-looking statements are not historical
facts but rather are based on Lonrho's current expectations,
estimates and projections about its industry, its beliefs and
assumptions. Words such as "anticipates," "expects," "intends,"
"plans," "believes," "seeks," "estimates," and similar expressions
are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject
to known and unknown risks, uncertainties and other factors, some
of which are beyond Lonrho's control, are difficult to predict and
could cause actual results to differ materially from those
expressed or forecasted in the forward-looking statements. Lonrho
cautions investors not to place undue reliance on these
forward-looking statements, which reflect the view of Lonrho only
as of the date of this announcement. The forward-looking statements
made in this announcement relate only to events as of the date on
which the statements are made. Lonrho will not undertake any
obligation to release publicly any revisions or updates to these
forward-looking statements to reflect events, circumstances or
unanticipated events occurring after the date of this announcement
except as required by law or by any appropriate regulatory
authority.
Risk Factors
Investors and prospective investors should consider carefully
whether an investment in Lonrho is suitable for them in light of
the information set out in this announcement. The risks and
uncertainties facing the Group are set out in the prospectus dated
31 March 2011. Additional risks and uncertainties not currently
known to the Group or that the Group deems immaterial may also
impair its business operations. The Group's business, prospects,
financial condition and results of operations could be materially
and adversely affected by any of these risks.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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