TIDMLONR TIDMTTM
RNS Number : 7474E
Lonrho PLC
15 May 2013
Not for release, publication or distribution, in whole or in
part, in, into or from any Restricted Jurisdiction or any
jurisdiction where to do so would constitute a violation of the
relevant laws of such jurisdiction.
15 May 2013
Recommended Cash Offer
For
Lonrho Plc
By
FS Africa Limited
The Board of Lonrho and the Board of FS Africa are pleased to
announce that they have reached agreement on the terms of a
recommended cash offer by FS Africa for the entire issued and to be
issued share capital of Lonrho. The Transaction is to be effected
by means of a Court-sanctioned scheme of arrangement under Part 26
of the Companies Act 2006 (or by the Offer under certain
circumstances described in this document).
Highlights
-- Under the terms of the Transaction, Lonrho Shareholders will be entitled to receive:
For each Lonrho Share: 10.25 pence in cash
The Transaction Consideration represents:
-> a premium of approximately 97.1% to the Closing Price of 5.2 pence per Lonrho Share on 14 May 2013 (being the last Business Day before this announcement); and
-> a premium of approximately 38.2% to the average Closing
Price of 7.42 pence per Lonrho Share for the six month period ended
14 May 2013 (being the last Business Day before this
announcement).
The Transaction Consideration values Lonrho's issued and to be
issued share capital on a fully diluted basis (assuming exercise of
all outstanding in the money options, Lonrho LTIP awards and Lonrho
Warrants) at approximately GBP174.5 million.
-- The Lonrho Directors, who have been so advised by Jefferies
(as the independent advisor for the purposes of Rule 3 of the City
Code), consider the terms of the Transaction to be fair and
reasonable. In providing its advice Jefferies has taken into
account the commercial assessments of the Lonrho Directors.
Accordingly, the Lonrho Directors intend unanimously to recommend
that Lonrho Shareholders vote in favour of the resolutions relating
to the Transaction at the Meetings (or in the event that the
Transaction is implemented by way of an Offer, to accept or procure
acceptance of such offer) as the Lonrho Directors have irrevocably
undertaken to do in respect of their own beneficial holdings of
4,633,197 Lonrho Shares in aggregate representing approximately
0.28% of Lonrho's issued share capital on 14 May 2013 (being the
last Business Day before this announcement).
-- Currently FS Africa (together with certain parties acting in
concert with it) holds or is otherwise interested in 330,253,282
Lonrho Shares representing approximately 19.97% of Lonrho's issued
share capital.
-- FS Africa has received irrevocable undertakings from the
Lonrho Directors to vote in favour of the Scheme in respect of
their entire beneficial holdings totalling 4,633,197 Lonrho Shares
in aggregate and representing approximately 0.28% of Lonrho's
issued share capital. Further details of these irrevocable
undertakings are set out in Appendix 3 to this announcement.
-- In addition, certain investors have given irrevocable
undertakings to FS Africa to vote in favour of the Scheme in
respect of, in aggregate, 293,384,604 Lonrho Shares representing
approximately 17.74% of Lonrho's issued share capital. Further
details of these irrevocable undertakings are set out at paragraph
14 of this announcement.
-- Lonrho is a conglomerate, operating in Africa, which focuses
on the provision of logistics and infrastructure for the
agriculture and oil and gas sectors throughout the continent.
Lonrho has a brand recognition that reflects a 100 year legacy of
creating and building businesses within Africa. Lonrho's core
business divisions are in Agriculture and Infrastructure, with
ancillary operations in the Hotel division and the Support Services
division.
-- FS Africa is a newly incorporated company incorporated in
England and Wales at the direction of the Consortium for the
purpose of implementing the Acquisition. FS Africa is jointly owned
and controlled by Rainer-Marc Frey and BIH S.A., a company
controlled and owned by Thomas Schmidheiny.
-- Commenting on today's announcement, Rainer-Marc Frey, the Chairman of FS Africa said:
"We are pleased to receive a recommendation from the Board of
Lonrho and our cash offer should provide certainty to
shareholders."
-- Thomas Schmidheiny, Consortium member added:
"We believe Lonrho has strong long-term prospects, but the
significant capital required to grow the business over time is
evident."
-- Commenting on the Transaction, Ambassador Frances Cook, the Chairman of Lonrho said:
"With the significant efforts of our employees and management,
Lonrho has been rapidly growing its four strategic divisions
aligned with the economic growth being driven by the agriculture
and oil and gas sectors, such that Lonrho now operates throughout
18 countries in Africa. FS Africa recognises these achievements and
wants to build on our well-established platform to further expand
and invest in the business to enhance Lonrho's market-leading
positions. The Board is recommending this offer, and believes it
gives our shareholders the opportunity to realise that value with
the certainty of a cash offer."
This summary should be read in conjunction with the following
full announcement and the Appendices.
The Transaction will be subject to the Conditions and other
terms set out in this announcement and to the full terms and
conditions which will be set out in the Scheme Document. Appendix 2
to the full announcement contains bases and sources of certain
information contained in this announcement. Details of irrevocable
undertakings received by FS Africa are set out in Appendix 3 to the
full announcement. Certain terms used in this announcement are
defined in Appendix 5 to the full announcement.
Enquiries:
Investec Bank plc
(Financial Adviser and Broker to FS
Africa)
Alex Snow, Garry Levin, David Anderson +44 (0) 20 7597 5970
Headland Consultancy
(Public Relations Adviser to FS Africa)
Howard Lee, Tom Gough, Dan Kahn +44 (0) 20 7367 5222
Lonrho
Geoffrey White, David Armstrong +44 (0) 20 7016 5105
Jefferies
(Financial Adviser and Broker to Lonrho)
Sara Hale, Andrew Bell, Harry Nicholas,
Michael Collinson +44 (0) 20 7029 8000
FTI Consulting
(Public Relations Adviser to Lonrho)
Edward Westropp, Georgina Bonham +44 (0) 20 7831 3113
Java Capital
(JSE Sponsor to Lonrho) +27 (011) 283 0042
This announcement is not intended to and does not constitute or
form part of any offer to sell or subscribe for or any invitation
to purchase or subscribe for any securities or the solicitation of
any vote or approval in any jurisdiction pursuant to the
Transaction or otherwise. The Transaction will be made solely
pursuant to the terms of the Scheme Document, which will contain
the full terms and conditions of the Transaction, including details
of how to vote in respect of the Transaction. Any decision in
respect of, or other response to, the Transaction should be made
only on the basis of the information contained in the Scheme
Document.
This announcement does not constitute a prospectus or prospectus
equivalent document.
The release, publication or distribution of this announcement in
jurisdictions other than the United Kingdom may be restricted by
law and therefore any persons who are subject to the laws of any
jurisdiction other than the United Kingdom should inform themselves
about and observe any applicable requirements. In particular, the
ability of persons who are not resident in the United Kingdom to
vote their Lonrho Shares with respect to the Scheme at the Court
Meeting, or to execute and deliver forms of proxy appointing
another to vote at the Court Meeting on their behalf, may be
affected by the laws of the relevant jurisdictions in which they
are located. This announcement has been prepared for the purpose of
complying with English law and the City Code and the information
disclosed may not be the same as that which would have been
disclosed if this announcement had been prepared in accordance with
the laws of jurisdictions outside the United Kingdom.
Copies of this announcement and any formal documentation
relating to the Transaction are not being, and must not be,
directly or indirectly, mailed or otherwise forwarded, distributed
or sent in or into or from any Restricted Jurisdiction and persons
receiving such documents (including custodians, nominees and
trustees) must not mail or otherwise forward, distribute or send it
in or into or from any Restricted Jurisdiction. If the Transaction
is implemented by way of an Offer (unless otherwise permitted by
applicable law and regulation), the Offer may not be made directly
or indirectly, in or into, or by the use of mails or any means or
instrumentality (including, but not limited to, facsimile, e-mail
or other electronic transmission, telex or telephone) of interstate
or foreign commerce of, or of any facility of a national, state or
other securities exchange of any Restricted Jurisdiction and the
Offer may not be capable of acceptance by any such use, means,
instrumentality or facilities.
Notice to US investors in Lonrho: The Transaction relates to the
shares of an English company and is being made by means of a scheme
of arrangement provided for under and governed by English law. A
transaction effected by means of a scheme of arrangement is not
subject to the tender offer rules or the proxy solicitation rules
under the US Exchange Act. Accordingly, the Transaction is subject
to the disclosure requirements and practices applicable in the
United Kingdom to schemes of arrangement which differ from the
disclosure requirements of United States tender offer and proxy
solicitation rules. If, in the future, FS Africa exercises the
right to implement the Transaction by way of a takeover offer and
determines to extend the offer into the United States, the
Transaction will be made in compliance with applicable United
States laws and regulations. Financial information included in this
announcement and the Scheme Documentation has been or will have
been prepared in accordance with accounting standards applicable in
the United Kingdom that may not be comparable to financial
information of US companies or companies whose financial statements
are prepared in accordance with generally accepted accounting
principles in the United States.
It may be difficult for US holders of Lonrho Shares to enforce
their rights and any claim arising out of the US federal laws,
since FS Africa and Lonrho are located in a non-US jurisdiction,
and some or all of their officers and directors may be residents of
a non-US jurisdiction. US holders of Lonrho Shares may not be able
to sue a non-US company or its officers or directors in a non-US
court for violations of the US securities laws. Further, it may be
difficult to compel a non-US company and its affiliates to subject
themselves to a US court's judgement.
Investec, which is authorised by the Prudential Regulation
Authority and regulated by the FCA and the Prudential Regulation
Authority, is acting exclusively for FS Africa and no one else in
connection with the Transaction and will not be responsible to
anyone other than FS Africa for providing the protections afforded
to clients of Investec or for providing advice in relation to the
Transaction or any other matters referred to in this
announcement.
Jefferies which is authorised and regulated in the UK by the
FCA, is acting exclusively for Lonrho and no one else in connection
with the Transaction and will not be responsible to anyone other
than Lonrho for providing the protections afforded to clients of
Jefferies or for providing advice in relation to the Transaction or
any other matters referred to in this announcement. Neither
Jefferies nor any of its subsidiaries, branches or affiliates gives
or accepts any duty, liability or responsibility whatsoever
(whether direct or indirect, whether in contract, in tort, under
statute or otherwise) to any person who is not a client of
Jefferies, in connection with this announcement, any statement
contained within or otherwise.
Cautionary Note Regarding Forward-Looking Statements
This announcement contains certain forward-looking statements
with respect to the financial condition, results of operations and
business of Lonrho and certain plans and objectives of FS Africa
with respect thereto. These forward-looking statements can be
identified by the fact that they do not relate only to historical
or current facts. Forward-looking statements often use words such
as "anticipate", "expect", "estimate", "target", "intend", "plan",
"goal", "believe", "hope", "aims", "continue", "will", "may",
"should", "would", "could", or other words of similar meaning.
These statements are based on assumptions and assessments made by
Lonrho and/or FS Africa in light of their experience and their
perception of historical trends, current conditions, future
developments and other factors they believe appropriate. By their
nature, forward-looking statements involve risk and uncertainty
because they relate to events and depend on circumstances that will
occur in the future and the factors described in the context of
such forward-looking statements in this document could cause actual
results and developments to differ materially from those expressed
in or implied by such forward-looking statements. Although it is
believed that the expectations reflected in such forward-looking
statements are reasonable, no assurance can be given that such
expectations will prove to have been correct and you are therefore
cautioned not to place undue reliance on these forward-looking
statements which speak only as at the date of this document.
Neither Lonrho nor FS Africa assumes any obligation to update or
correct the information contained in this document (whether as a
result of new information, future events or otherwise), except as
required by applicable law.
There are several factors which could cause actual results to
differ materially from those expressed or implied in
forward-looking statements. Among the factors that could cause
actual results to differ materially from those described in the
forward-looking statements are changes in the global, political,
economic, business, competitive, market and regulatory forces,
future exchange and interest rates, changes in tax rates and future
business combinations or dispositions.
Dealing and Opening Position Disclosure Requirements
Under Rule 8.3(a) of the City Code, any person who is interested
in 1%. or more of any class of relevant securities of an offeree
company or of any paper offeror (being any offeror other than an
offeror in respect of which it has been announced that its offer
is, or is likely to be, solely in cash) must make an Opening
Position Disclosure following the commencement of the offer period
and, if later, following the announcement in which any paper
offeror is first identified.
An Opening Position Disclosure must contain details of the
person's interests and short positions in, and rights to subscribe
for, any relevant securities of each of (i) the offeree company and
(ii) any paper offeror(s). An Opening Position Disclosure by a
person to whom Rule 8.3(a) applies must be made by no later than
3.30 pm (London time) on the 10(th) business day following the
commencement of the offer period and, if appropriate, by no later
than 3.30 pm (London time) on the 10(th) business day following the
announcement in which any paper offeror is first identified.
Relevant persons who deal in the relevant securities of the offeree
company or of a paper offeror prior to the deadline for making an
Opening Position Disclosure must instead make a Dealing
Disclosure.
Under Rule 8.3(b) of the City Code, any person who is, or
becomes, interested in 1% or more of any class of relevant
securities of the offeree company or of any paper offeror must make
a Dealing Disclosure if the person deals in any relevant securities
of the offeree company or of any paper offeror. A Dealing
Disclosure must contain details of the dealing concerned and of the
person's interests and short positions in, and rights to subscribe
for, any relevant securities of each of (i) the offeree company and
(ii) any paper offeror, save to the extent that these details have
previously been disclosed under Rule 8. A Dealing Disclosure by a
person to whom Rule 8.3(b) applies must be made by no later than
3.30 pm (London time) on the business day following the date of the
relevant dealing.
If two or more persons act together pursuant to an agreement or
understanding, whether formal or informal, to acquire or control an
interest in relevant securities of an offeree company or a paper
offeror, they will be deemed to be a single person for the purpose
of Rule 8.3.
Opening Position Disclosures must also be made by the offeree
company and by any offeror and Dealing Disclosures must also be
made by the offeree company, by any offeror and by any persons
acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).
Details of the offeree and offeror companies in respect of whose
relevant securities Opening Position Disclosures and Dealing
Disclosures must be made can be found in the Disclosure Table on
the Takeover Panel's website at www.thetakeoverpanel.org.uk,
including details of the number of relevant securities in issue,
when the offer period commenced and when any offeror was first
identified. If you are in any doubt as to whether you are required
to make an Opening Position Disclosure or a Dealing Disclosure, you
should contact the Panel's Market Surveillance Unit on +44 (0)20
7638 0129.
Information relating to Lonrho Shareholders
Please be aware that addresses, electronic addresses and certain
information provided by Lonrho Shareholders, persons with
information rights and other relevant persons for the receipt of
communications from Lonrho may be provided to FS Africa during the
Offer Period as requested under Section 4 of Appendix 4 of the City
Code to comply with Rule 2.12(c).
Publication on Website
A copy of this announcement will be made available free of
charge (subject to any applicable restrictions with respect to
persons in Restricted Jurisdictions) on www.lonrho.com by no later
than noon (London time) on the day following this announcement.
Rule 2.10 Requirement
In accordance with Rule 2.10 of the City Code, Lonrho announces
that it has in issue 1,653,415,048ordinary shares of 1 pence each
in issue admitted to the Official List (premium segment) and to
trading on the London Stock Exchange's Main Market for listed
securities and listed on the JSE's AltX. The International
Securities Identification Number ("ISIN") of the ordinary shares is
GB0002568813.
In addition the Company has US$70,000,000 7% Guaranteed
Convertible Bonds due 2015 admitted to the official list of the
Luxembourg Stock Exchange and admitted to trading on the Euro MTF
Market of the Luxembourg Stock Exchange. The ISIN is
XS0549738531.
Not for release, publication or distribution, in whole or in
part, in, into or from any Restricted Jurisdiction or any
jurisdiction where to do so would constitute a violation of the
relevant laws of such jurisdiction.
Recommended Cash Offer
For
Lonrho Plc
by FS Africa Ltd
1. Introduction
The Board of Lonrho and the Board of FS Africa are pleased to
announce that they have reached agreement on the terms of a
recommended cash offer by FS Africa for the entire issued and to be
issued share capital of Lonrho.
2. The Transaction
It is intended that the Transaction will be implemented by way
of a Court-sanctioned scheme of arrangement under Part 26 of the
Companies Act 2006. The purpose of the Scheme is to enable FS
Africa to acquire the whole of the issued and to be issued share
capital of Lonrho.
Under the terms of the Scheme, which will be subject to the
Conditions and other terms set out in this announcement and to
further terms to be set out in the Scheme Document, Lonrho
Shareholders will receive:
For each Lonrho Share: 10.25 pence in cash
The Transaction Consideration represents:
-> a premium of approximately 97.1% to the Closing Price of 5.2 pence per Lonrho Share on 14 May 2013 (being the last Business Day before this announcement); and
-> a premium of approximately 38.2% to the average Closing
Price of 7.42 pence per Lonrho Share for the six month period ended
14 May 2013 (being the last Business Day before this
announcement).
The Transaction Consideration values Lonrho's issued and to be
issued share capital on a fully diluted basis (assuming exercise of
all outstanding in the money options, Lonrho LTIP awards and Lonrho
Warrants) at approximately GBP174.5 million.
In the event that the Transaction is to be implemented by way of
an Offer, the Lonrho Shares will be acquired pursuant to the Offer
fully paid and free from all liens, charges, equitable interests,
encumbrances and rights of pre-emption and any other interests of
any nature whatsoever and together with all rights attaching
thereto. Any new Lonrho Shares issued to FS Africa pursuant to the
Scheme will be issued on the same basis.
There will also be an offer to all Lonrho Convertible
Bondholders at a price which reflects the price at which the Lonrho
Convertible Bondholders may require Lonrho to redeem the Lonrho
Convertible Bonds on a change of control. Further details of this
offer are set out in paragraph 11 below.
3. Recommendation
The Lonrho Directors, who have been so advised by Jefferies,
consider the terms of the Transaction to be fair and reasonable. In
providing its advice Jefferies has taken into account the
commercial assessments of the Lonrho Directors.
Accordingly, the Lonrho Directors intend unanimously to
recommend that Lonrho Shareholders vote in favour of the Scheme (or
in the event that the Transaction is implemented by way of a
takeover offer, to accept or procure acceptance of such offer) as
the Lonrho Directors have irrevocably undertaken to do in respect
of their entire beneficial holdings of 4,633,197 Lonrho Shares in
aggregate and representing approximately 0.28% of Lonrho's issued
share capital.
4. Background to and reasons for the recommendation
Over the past four years, Lonrho has strategically positioned
and invested in its divisions, Agribusiness, Infrastructure,
Support Services and Hotels, to service the requirements in Africa
from global demand for energy and food production. 2012 was a
significant year for Lonrho as it completed the building of
foundations of these business units and took strategic action to
focus on increasing margins through operational efficiencies and
building long term sustainable customer relationships; a transition
in strategy which has taken longer to complete than the Lonrho
Directors expected. Despite challenging global economic conditions
and alongside an on-going requirement to invest in the businesses
in order to achieve its growth potential, this is a strategy Lonrho
has continued to execute in 2013.
The Lonrho Directors believe that the Offer, which is all in
cash and at a significant premium to Lonrho's current and recent
share price, recognises and values the potential of the business.
The Lonrho Directors have assessed the benefits of maintaining an
independent listing and the potential future growth in equity value
for investors against the certainty for Lonrho Shareholders of
realising value at a significant cash premium to the recent share
price.
The Lonrho Directors have concluded that Lonrho Shareholders'
best interests are served by the Offer being made to them. The
Lonrho Directors believe that significant benefits to employees and
customers of Lonrho can be achieved through Lonrho being owned by
an organisation that has experience in managing businesses in
developing countries and is committed to investing significant
levels of capital into the business over the long term.
5. Background to and reasons for the Transaction
Members of the Consortium have significant experience in
investing in and the building of multi-national businesses,
including in regions such as Africa. In identifying opportunities
for investment, certain members of the Consortium historically have
invested in both the equity and debt capital of Lonrho believing
that Lonrho's principal strategy of building a portfolio of
businesses that are strategically positioned to take advantage of
the economic development of the African region was sound.
There are inherent challenges in building and running a
conglomerate with diverse business interests in an emerging market
environment such as Africa. This has resulted in volatility in
Lonrho's financial results due, in part, to certain of Lonrho's
businesses being at different stages of maturity. The Lonrho
Directors believe that in order to unlock the inherent value within
Lonrho a restructuring of Lonrho and appropriate levels of
additional capital investment in Lonrho's core assets of its
Agribusiness and Logistics business are required. The Lonrho
Directors believe that FS Africa is well placed to bring relevant
operational and industry expertise to Lonrho, as well as capital,
to support a strategy to create long term value.
6. Information relating to Lonrho
Lonrho is a conglomerate, operating in Africa, which focuses on
the provision of logistics and infrastructure for the agriculture
and oil and gas sectors throughout the continent. Lonrho has a
brand recognition that reflects a 100 year legacy of creating and
building businesses within Africa. Lonrho only invests and builds
businesses in Africa, and the corporate strategy is to help
facilitate the development of the Continent. Lonrho's core business
divisions are in Agriculture and Infrastructure, with ancillary
operations in the Hotel division and Support Services division.
These important industries provide some of the building blocks and
foundations required for successful economic growth. Lonrho has
built tangible operational businesses that promote job creation,
assist poverty reduction, and are an integral part of African
economic development.
Lonrho's ordinary share capital is admitted to the Official List
(premium segment) and to trading on London Stock Exchange's Main
Market for listed securities. Lonrho also maintains a secondary
listing on the JSE's AltX and has its American Depository Receipts
traded on the OTC QX International Exchange in the United States.
Lonrho's Convertible Bond is admitted to the official list of the
Luxembourg Stock Exchange and admitted to trading on the Euro MTF
Market of the Luxembourg Stock Exchange.
As set out in Lonrho's interim management statement announced on
9 May 2013, financial highlights to 31 March 2013 include:
-- Revenue in the first quarter of 2013 was GBP39.1 million. On
an adjusted like-for-like basis at constant currency revenue has
marginally increased by 0.3% year on year;
-- Gross margins across the Lonrho Group were up 7.2% in the
quarter demonstrating the results of the continued focus and
strategic action by the Lonrho Board on increasing margins through
operational efficiencies; and
-- Net debt was GBP99.1 million at 31 March 2013 compared with
GBP87.2 million at 31 December 2012. The majority of this increase
(of GBP11.9 million) was due to a GBP6.1 million negative foreign
exchange movement due to the decline of Sterling versus the US
dollar. The balance reflects anticipated working capital movements
in the quarter.
For the financial year ended 31 December 2012 Lonrho reported
revenues from core operating divisions of GBP186.3 million. As at
31 December 2012 Lonrho's net assets were GBP174.2 million with net
indebtedness of GBP87.2 million. Lonrho's net operating loss for
the year from core operating divisions was GBP3.4 million with a
basic loss per share of 0.11 pence.
7. Information relating to FS Africa
FS Africa is a newly incorporated company incorporated in
England and Wales at the direction of the Consortium for the
purpose of implementing the Acquisition. FS Africa is jointly owned
and controlled by Rainer-Marc Frey and BIH S.A., a company
controlled and owned by Thomas Schmidheiny. Christopher M. Chambers
is acting as a consultant to FS Africa on the Transaction and it is
expected that he will join the board of Lonrho if the Scheme
becomes effective.
FS Africa has not traded since its incorporation, nor has it
entered into any obligations other than in connection with the
implementation of the Acquisition. Further information in relation
to FS Africa will be set out in the Scheme Document.
Currently FS Africa (together with certain parties acting in
concert with it) holds or is otherwise interested in 330,253,282
Lonrho Shares representing approximately 19.97% of Lonrho's issued
share capital.
8. Management, employees and locations
As would be expected, in due course, FS Africa intends to enter
into discussions with senior management of Lonrho regarding their
role and potential continuing involvement in the on-going business
of Lonrho. There are no agreements or arrangements between FS
Africa and senior management of Lonrho regarding their continuing
involvement at this time and the Transaction is not conditional on
reaching agreement with senior management.
FS Africa attaches great importance to the active participation
and continued commitment of Lonrho's employees. Accordingly, FS
Africa intends and has given assurances to the Lonrho Board that,
upon and following completion of the Acquisition, the existing
contractual and statutory employment rights and pension rights of
all employees will be fully safeguarded and the Lonrho Group
employers will continue to comply with the contractual and other
entitlements in relation to pension and employment rights of
existing employees.
Upon completion of the transaction FS Africa will undertake a
strategic review of Lonrho's business and operations and, save as
disclosed below, until that review is completed FS Africa cannot be
certain what, if any, repercussions there will be on employment of
the management and employees of Lonrho, the location of Lonrho's
places of business or any redeployment of Lonrho's fixed
assets.
It is anticipated that the strategic review will include
particular focus on the costs associated with the central functions
of Lonrho, including those associated with Lonrho having been
listed on the Official List and traded on the London Stock
Exchange. It is likely that this may lead to a limited number of
redundancies at Lonrho's head office function.
Save as set out above, FS Africa currently has no other firm
intentions with regard to the employment of the management and
employees of Lonrho, the location of Lonrho's places of business or
any redeployment of Lonrho's fixed assets.
9. Financing of the Transaction
The cash consideration payable pursuant to the Transaction will
be provided by the Consortium members through equity contributions
to FS Africa. It is not envisaged that any third party debt finance
will be required.
Investec, financial adviser to FS Africa, is satisfied that
sufficient resources are available to FS Africa to satisfy in full
the cash consideration payable pursuant to the Transaction.
Further information on the financing of the Transaction will be
set out in the Scheme Document.
10. Opening Position Disclosure
Currently FS Africa (together with certain parties acting in
concert with it) holds or is otherwise interested in 330,253,282
Lonrho Shares representing approximately 19.97% of Lonrho's issued
share capital. A public Opening Position Disclosure will be made on
the date of this announcement setting out details of these
interests.
It has not been practicable for FS Africa to make enquiries of
all of its concert parties in advance of the release of this
announcement. Therefore, this announcement may not include all of
the relevant details in respect of FS Africa's concert parties. FS
Africa confirms that a further disclosure in accordance with Rule
8.1(a) and note 2(a)(i) on Rule 8 of the Takeover Code will be made
as soon as possible, if required.
11. Share Plans, Convertible Bonds and Lonrho ADRs
Share Plans and Warrants
Appropriate proposals will be made to participants in the Lonrho
Share Plans and holders of the Lonrho Warrants and such persons
will be sent separate letters in due course explaining the effect
of the Offer on their options/awards and setting out the proposals
being made in respect of their outstanding options/awards and
warrants in connection with the Scheme.
Convertible Bonds
Under the terms of the Lonrho Convertible Bonds, Lonrho
Convertible Bondholders have a change of control put right whereby,
following the occurrence of a change of control of the ownership of
Lonrho, bondholders will have the right to require Lonrho to redeem
their Lonrho Convertible Bonds at a specified price which varies
depending on when the change of control occurs and is calculated on
the basis of a formula described under the terms of the Lonrho
Convertible Bonds.
An offer will, therefore, be made to all Lonrho Convertible
Bondholders at a price which reflects the price at which the Lonrho
Convertible Bondholders may require Lonrho to redeem the Lonrho
Convertible Bonds on a change of control. Lonrho and FS Africa will
notify Lonrho Convertible Bondholders of the change of control
redemption price once the date of the change of control is known
and the price has been calculated. Currently FS Africa (together
with parties acting in concert with it) holds approximately 49.64%
of the principal amount of the Lonrho Convertible Bonds.
The attention of Lonrho Convertible Bondholders is drawn to FS
Africa's intention to delist Lonrho, as described in paragraph 15,
below.
Lonrho ADRs
If the Scheme becomes effective in accordance with paragraph 13
below, the Lonrho ADRs will be cancelled and Bank of New York
Mellon, as depositary, will deliver the Transaction Consideration
to which holders of Lonrho ADRs are entitled in cash to those
holders in accordance with the deposit agreement which governs
them.
Holders of Lonrho ADRs should contact Bank of New York Mellon
for further information about the Transaction and its effect on the
Lonrho ADRs.
12. Offer - related arrangements
Lonrho and FS Africa have entered into a mutual confidentially
agreement dated 25 April 2013 pursuant to which each of Lonrho and
FS Africa has undertaken to keep certain information relating to
both the Acquisition and the other party confidential and not to
disclose such information to third parties, except:
-- to certain permitted connected persons of either party or
other disclosees for the purposes of evaluating the
Acquisition;
-- if required by applicable laws or regulations or at the
request of any applicable governmental or supervisory organisation;
or
-- information which relates to the Acquisition and is released
by Lonrho provided that (to the extent permitted) Lonrho first
consults with the provider of the information.
These confidentiality obligations will remain in force for two
years from the date of the mutual confidentiality agreement.
13. Scheme of Arrangement
It is intended that the Transaction will be effected by a
Court-sanctioned scheme of arrangement between Lonrho and the
Scheme Shareholders under Part 26 of the Companies Act 2006. The
purpose of the scheme is to provide for FS Africa to become owner
of the whole of the issued and to be issued share capital of
Lonrho.
Under the Scheme, the Transaction is to be achieved by the
cancellation of the Scheme Shares and the application of the
reserve arising from such cancellation in paying up in full a
number of new shares in Lonrho (which is equal to the number of
Scheme Shares cancelled) and issuing the same to FS Africa in
consideration for which Scheme Shareholders will receive cash
consideration on the basis set out in paragraph 2 of this
announcement.
The Transaction will be subject to the Conditions and further
terms and conditions referred to in Appendix 1 to this announcement
and to be set out in the Scheme Document. The Conditions include
(i) a long-stop date of 15 November 2013 by which the Scheme must
become effective (unless extended with the agreement of FS Africa
and Lonrho); (ii) a condition that the Meetings are held no later
than the 22(nd) day after the expected date of the Meetings to be
set out in the Scheme Document in due course (or such later date as
may be agreed between FS Africa and Lonrho); and (iii) a condition
that the Scheme is sanctioned by the Court no later than the 22(nd)
day after the expected date of the Scheme Court Hearing to be set
out in the Scheme Document in due course (or such later date as may
be agreed between FS Africa and Lonrho).
To become effective, the Scheme requires the approval of Scheme
Shareholders by the passing of a special resolution at the Court
Meeting. The resolution must be approved by a majority in number of
the Scheme Shareholders present and voting (and entitled to vote),
either in person or by proxy, representing not less than 75% of the
Scheme Shares held by such Scheme Shareholders and the passing of a
special resolution at the Lonrho General Meeting, requiring the
approval of Lonrho Shareholders representing at least 75% of the
votes cast at the Lonrho General Meeting (either in person or by
proxy). The Lonrho General Meeting will be held immediately after
the Court Meeting. In respect of the special resolution at the
Lonrho General Meeting, Lonrho Shareholders will be entitled to
cast one vote for each Scheme Share held.
Following the Meetings, the Scheme must be sanctioned by the
Court and the associated Capital Reduction must be confirmed by the
Court. The Scheme will only become effective once a copy of the
Scheme Court Order and a copy of the Reduction Court Order are
delivered to the Registrar of Companies.
Upon the Scheme becoming effective, it will be binding on all
Lonrho Shareholders, irrespective of whether or not they attended
or voted at the Meetings and the cash consideration will be
despatched by FS Africa to Scheme Shareholders no later than 14
days after the Effective Date.
The Scheme Document will include full details of the Scheme,
together with notices of the Court Meeting and the Lonrho General
Meeting and the expected timetable, and will specify the action to
be taken by Scheme Shareholders. The circular including the Scheme
and notices of the Meetings will be sent to Lonrho Shareholders as
soon as reasonably practicable.
The Scheme will be governed by English law. The Scheme will be
subject to the applicable requirements of the City Code, the Panel,
the London Stock Exchange and the UK Listing Authority. The bases
and sources of certain information contained in this announcement
are set out in Appendix 2. Certain terms used in this announcement
are defined in Appendix 5.
14. Irrevocable Undertakings
FS Africa has received irrevocable undertakings to vote in
favour of the Scheme at the Court Meeting and the resolutions to be
proposed at the Lonrho General Meeting in respect of a total of
298,017,801 Lonrho Shares representing in aggregate approximately
18.02% of Lonrho's existing issued share capital, further details
of which are set out below. See Appendix 3 for a breakdown of these
irrevocable undertakings.
Lonrho Directors' Irrevocable Undertakings
The Lonrho Directors have irrevocably undertaken to vote in
favour of the Scheme in respect of their own beneficial holdings
totalling 4,633,197 Lonrho Shares in aggregate representing
approximately 0.28% of Lonrho's issued share capital.
These irrevocable undertakings remain binding if a higher
competing offer for Lonrho is made but they cease to be binding if
the Scheme terminates or lapses in accordance with its terms or
otherwise becomes incapable of ever becoming effective, provided
that FS Africa has not, within seven days of the Scheme having so
terminated or lapsed, announced in accordance with Rule 2.7 of the
City Code, that it intends to implement the Transaction instead by
way of an Offer. See Appendix 3 for a breakdown of these
irrevocable undertakings.
Other Irrevocable Undertakings
FS Africa has also received irrevocable undertakings from each
of Zesiger Capital Group LLC and CIM Investment Management Limited
to vote in favour of the Scheme at the Court Meeting and the
resolutions to be proposed at the Lonrho General Meeting in respect
of a total of 293,384,604 Lonrho Shares, representing approximately
17.74% of Lonrho's issued share capital.
These irrevocable undertakings cease to be binding if a
competing offer for all of the shares in Lonrho is announced with a
consideration value per share which is not less than 10% greater
than the Transaction Consideration and FS Africa has not within 14
days of the date of the announcement of the competing offer
announced a revised offer the terms of which, in the reasonable
opinion of Jefferies as the independent adviser for the purposes of
Rule 3 of the City Code, provides equal or greater value for Lonrho
Shareholders than that provided under such competing offer. See
Appendix 3 for a breakdown of these irrevocable undertakings.
15. Delisting and re-registration
Prior to the Scheme becoming effective, a request will be made
to the London Stock Exchange to cancel trading in Lonrho Shares on
its market for listed securities on the first Business Day
following the Effective Date and the UK Listing Authority will be
requested to cancel the listing of the Lonrho Shares from the
Official List on the first Business Day following the Effective
Date.
In addition, prior to the Scheme becoming effective a request
will be made to the JSE to terminate the secondary listing of the
Lonrho Shares on the JSE's AltX on the first Business Day following
the Effective Date, or such other date as the JSE may
determine.
Share certificates in respect of the Lonrho Shares will cease to
be valid and should be destroyed on the first Business Day
following the Effective Date. In addition, entitlements held within
the CREST system to the Lonrho Shares will be cancelled on the
first Business Day following the Effective Date. Shares held in
certificated or dematerialised form on the South African share
register will be cancelled in accordance with the JSE Listings
Requirements and the applicable Strate settlement rules.
As soon as possible after the Effective Date, it is intended
that Lonrho will be re-registered as a private limited company.
16. Documents on display
Copies of the following documents will by no later than 12 noon
on 16 May 2013 be published on www.lonrho.com until the end of the
Offer Period: (i) the irrevocable undertakings; and (ii) the
confidentiality letter referred to in paragraph 12 above.
17. General
FS Africa reserves the right to elect to implement the
Transaction by way of an Offer for the entire issued and to be
issued share capital of Lonrho not already held by FS Africa as an
alternative to the Scheme. In such an event an Offer will be
implemented on the same terms (subject to appropriate amendments),
so far as applicable, as those which would apply to the Scheme and
subject to the amendment referred to in Appendix 1 of this
announcement regarding the acceptance condition for such an
offer.
If the Transaction is effected by way of an Offer and such Offer
becomes or is declared unconditional in all respects and sufficient
acceptances are received FS Africa intends to: (i) request the
London Stock Exchange and the UK Listing Authority cancel trading
in Lonrho Shares on the London Stock Exchange's main market for
listed securities and the listing of the Lonrho Shares from the
Official List; (ii) request the JSE to cancel trading in Lonrho
Shares on the JSE's AltX; and (iii) exercise its rights to apply
the provisions of Chapter 3 of Part 28 of the Companies Act 2006 to
acquire compulsorily the remaining Lonrho Shares in respect of
which the Offer has not been accepted.
No chain principle bid for Fastjet Plc is being required per
Note 8 to Rule 9.1 of the City Code.
This announcement is not intended to and does not constitute or
form part of any offer to sell or subscribe for or any invitation
to purchase or subscribe for any securities or the solicitation of
any vote or approval in any jurisdiction pursuant to the
Transaction or otherwise. The Transaction will be made solely
pursuant to the terms of the Scheme Document, which will contain
the full terms and conditions of the Transaction, including details
of how to vote in respect of the Transaction. Any decision in
respect of, or other response to, the Transaction should be made
only on the basis of the information contained in the Scheme
Document.
This announcement does not constitute a prospectus or prospectus
equivalent document.
The release, publication or distribution of this announcement in
jurisdictions other than the United Kingdom may be restricted by
law and therefore any persons who are subject to the laws of any
jurisdiction other than the United Kingdom should inform themselves
about and observe any applicable requirements. In particular, the
ability of persons who are not resident in the United Kingdom to
vote their Lonrho Shares with respect to the Scheme at the Court
Meeting, or to execute and deliver forms of proxy appointing
another to vote at the Court Meeting on their behalf, may be
affected by the laws of the relevant jurisdictions in which they
are located. This announcement has been prepared for the purpose of
complying with English law and the City Code and the JSE Listings
Requirements, insofar as same is relevant, and the information
disclosed may not be the same as that which would have been
disclosed if this announcement had been prepared in accordance with
the laws of jurisdictions outside the United Kingdom.
Copies of this announcement and any formal documentation
relating to the Transaction are not being, and must not be,
directly or indirectly, mailed or otherwise forwarded, distributed
or sent in or into or from any Restricted Jurisdiction and persons
receiving such documents (including custodians, nominees and
trustees) must not mail or otherwise forward, distribute or send it
in or into or from any Restricted Jurisdiction. If the Transaction
is implemented by way of an Offer (unless otherwise permitted by
applicable law and regulation), the Offer may not be made directly
or indirectly, in or into, or by the use of mails or any means or
instrumentality (including, but not limited to, facsimile, e-mail
or other electronic transmission, telex or telephone) of interstate
or foreign commerce of, or of any facility of a national, state or
other securities exchange of any Restricted Jurisdiction and the
Offer may not be capable of acceptance by any such use, means,
instrumentality or facilities.
Notice to US investors in Lonrho: The Transaction relates to the
shares of an English company and is being made by means of a scheme
of arrangement provided for under and governed by English law. A
transaction effected by means of a scheme of arrangement is not
subject to the tender offer rules or the proxy solicitation rules
under the US Exchange Act. Accordingly, the Transaction is subject
to the disclosure requirements and practices applicable in the
United Kingdom to schemes of arrangement which differ from the
disclosure requirements of United States tender offer and proxy
solicitation rules. If, in the future, FS Africa exercises the
right to implement the Transaction by way of a takeover offer and
determines to extend the offer into the United States, the
Transaction will be made in compliance with applicable United
States laws and regulations. Financial information included in this
announcement and the Scheme Documentation has been or will have
been prepared in accordance with accounting standards applicable in
the United Kingdom that may not be comparable to financial
information of US companies or companies whose financial statements
are prepared in accordance with generally accepted accounting
principles in the United States.
It may be difficult for US holders of Lonrho Shares to enforce
their rights and any claim arising out of the US federal laws,
since FS Africa and Lonrho are located in a non-US jurisdiction,
and some or all of their officers and directors may be residents of
a non-US jurisdiction. US holders of Lonrho Shares may not be able
to sue a non-US company or its officers or directors in a non-US
court for violations of the US securities laws. Further, it may be
difficult to compel a non-US company and its affiliates to subject
themselves to a US court's judgement.
Investec, which is authorised by the Prudential Regulation
Authority and regulated by the FCA and the Prudential Regulation
Authority, is acting exclusively for FS Africa and no one else in
connection with the Transaction and will not be responsible to
anyone other than FS Africa for providing the protections afforded
to clients of Investec or for providing advice in relation to the
Transaction or any other matters referred to in this
announcement.
Jefferies, which is authorised and regulated in the UK by the
FCA, is acting exclusively for Lonrho and no one else in connection
with the Transaction and will not be responsible to anyone other
than Lonrho for providing the protections afforded to clients of
Jefferies or for providing advice in relation to the Transaction or
any other matters referred to in this announcement. Neither
Jefferies nor any of its subsidiaries, branches or affiliates gives
or accepts any duty, liability or responsibility whatsoever
(whether direct or indirect, whether in contract, in tort, under
statute or otherwise) to any person who is not a client of
Jefferies, in connection with this announcement, any statement
contained within or otherwise.
Cautionary Note Regarding Forward-Looking Statements
This announcement contains certain forward-looking statements
with respect to the financial condition, results of operations and
business of Lonrho and certain plans and objectives of FS Africa
with respect thereto. These forward-looking statements can be
identified by the fact that they do not relate only to historical
or current facts. Forward-looking statements often use words such
as "anticipate", "target", "expect", "estimate", "intend", "plan",
"goal", "believe", "hope", "aims", "continue", "will", "may",
"should", "would", "could", or other words of similar meaning.
These statements are based on assumptions and assessments made by
Lonrho and/or FS Africa in light of their experience and their
perception of historical trends, current conditions, future
developments and other factors they believe appropriate. By their
nature, forward-looking statements involve risk and uncertainty
because they relate to events and depend on circumstances that will
occur in the future and the factors described in the context of
such forward-looking statements in this document could cause actual
results and developments to differ materially from those expressed
in or implied by such forward-looking statements. Although it is
believed that the expectations reflected in such forward-looking
statements are reasonable, no assurance can be given that such
expectations will prove to have been correct and you are therefore
cautioned not to place undue reliance on these forward-looking
statements which speak only as at the date of this document.
Neither Lonrho nor FS Africa assumes any obligation to update or
correct the information contained in this document (whether as a
result of new information, future events or otherwise), except as
required by applicable law.
There are several factors which could cause actual results to
differ materially from those expressed or implied in
forward-looking statements. Among the factors that could cause
actual results to differ materially from those described in the
forward-looking statements are changes in the global, political,
economic, business, competitive, market and regulatory forces,
future exchange and interest rates, changes in tax rates and future
business combinations or dispositions.
Dealing and Opening Position Disclosure Requirements
Under Rule 8.3(a) of the City Code, any person who is interested
in 1% or more of any class of relevant securities of an offeree
company or of any paper offeror (being any offeror other than an
offeror in respect of which it has been announced that its offer
is, or is likely to be, solely in cash) must make an Opening
Position Disclosure following the commencement of the offer period
and, if later, following the announcement in which any paper
offeror is first identified.
An Opening Position Disclosure must contain details of the
person's interests and short positions in, and rights to subscribe
for, any relevant securities of each of (i) the offeree company and
(ii) any paper offeror(s). An Opening Position Disclosure by a
person to whom Rule 8.3(a) applies must be made by no later than
3.30 pm (London time) on the 10(th) business day following the
commencement of the offer period and, if appropriate, by no later
than 3.30 pm (London time) on the 10th business day following the
announcement in which any paper offeror is first identified.
Relevant persons who deal in the relevant securities of the offeree
company or of a paper offeror prior to the deadline for making an
Opening Position Disclosure must instead make a Dealing
Disclosure.
Under Rule 8.3(b) of the City Code, any person who is, or
becomes, interested in 1% or more of any class of relevant
securities of the offeree company or of any paper offeror must make
a Dealing Disclosure if the person deals in any relevant securities
of the offeree company or of any paper offeror. A Dealing
Disclosure must contain details of the dealing concerned and of the
person's interests and short positions in, and rights to subscribe
for, any relevant securities of each of (i) the offeree company and
(ii) any paper offeror, save to the extent that these details have
previously been disclosed under Rule 8. A Dealing Disclosure by a
person to whom Rule 8.3(b) applies must be made by no later than
3.30 pm (London time) on the business day following the date of the
relevant dealing.
If two or more persons act together pursuant to an agreement or
understanding, whether formal or informal, to acquire or control an
interest in relevant securities of an offeree company or a paper
offeror, they will be deemed to be a single person for the purpose
of Rule 8.3.
Opening Position Disclosures must also be made by the offeree
company and by any offeror and Dealing Disclosures must also be
made by the offeree company, by any offeror and by any persons
acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).
Details of the offeree and offeror companies in respect of whose
relevant securities Opening Position Disclosures and Dealing
Disclosures must be made can be found in the Disclosure Table on
the Takeover Panel's website at www.thetakeoverpanel.org.uk,
including details of the number of relevant securities in issue,
when the offer period commenced and when any offeror was first
identified. If you are in any doubt as to whether you are required
to make an Opening Position Disclosure or a Dealing Disclosure, you
should contact the Panel's Market Surveillance Unit on +44 (0)20
7638 0129.
Information relating to Lonrho Shareholders
Please be aware that addresses, electronic addresses and certain
information provided by Lonrho Shareholders, persons with
information rights and other relevant persons for the receipt of
communications from Lonrho may be provided to FS Africa during the
Offer Period as requested under Section 4 of Appendix 4 of the City
Code to comply with Rule 2.12(c).
Publication on Website
A copy of this announcement will be made available free of
charge (subject to any applicable restrictions with respect to
persons in Restricted Jurisdictions) on www.lonrho.com by no later
than noon (London time) on the day following this announcement.
Rule 2.10 Requirement
In accordance with Rule 2.10 of the City Code, Lonrho announces
that it has in issue 1,653,415,048ordinary shares of 1 pence each
in issue admitted to the Official List (premium segment) and to
trading on the London Stock Exchange's Main Market for listed
securities and listed on the JSE's AltX. The International
Securities Identification Number ("ISIN") of the ordinary shares is
GB0002568813.
In addition the Company has US$70,000,000 7% Guaranteed
Convertible Bonds due 2015 admitted to the official list of the
Luxembourg Stock Exchange and admitted to trading on the Euro MTF
Market of the Luxembourg Stock Exchange. The ISIN is
XS0549738531.
APPENDIX 1
CONDITIONS TO AND CERTAIN FURTHER TERMS OF THE ACQUISITION
Part A: Conditions of the Acquisition
The Acquisition will be conditional upon the Scheme becoming
unconditional and becoming effective by no later than 15 November
2013, or such later date (if any) as FS Africa and Lonrho may agree
and the Court may allow.
(A) The Scheme will be conditional upon:
(1) its approval by a majority in number representing not less
than three-fourths in value of the Scheme Shareholders (or the
relevant class or classes thereof, if applicable) present and
voting, either in person or by proxy, at the Court Meeting and at
any separate class meeting which may be required by the Court or at
any adjournment of any such meeting on or before the 22(nd) day
after the expected date of the Court Meeting to be set out in the
Scheme Document in due course (or such later date, if any, as FS
Africa and Lonrho may agree and the Court may allow);
(2) all resolutions necessary to approve and implement the
Scheme being duly passed by the requisite majority or majorities at
the General Meeting of Lonrho or at any adjournment of that meeting
on or before the 22(nd) day after the expected date of the General
Meeting to be set out in the Scheme Document in due course (or such
later date, if any, as FS Africa and Lonrho may agree and the Court
may allow); and
(3) the sanction of the Scheme by the Court with or without
modification (but subject to any such modification being acceptable
to FS Africa and Lonrho) and the confirmation of the Reduction of
Capital by the Court with or without modification (but subject to
any such modification being acceptable to FS Africa and Lonrho) on
or before the 22(nd) day after the expected date of the Scheme
Court Hearing to be set out in the Scheme Document in due course
(or such later date, if any, as FS Africa and Lonrho may agree and
the Court may allow) and:
(i) the delivery of a copy of each of the Court Orders and of
the requisite statement of capital to the Registrar of Companies in
England and Wales; and
(ii) if the Court so orders for it to become effective, the
registration of the Reduction Court Order and the statement of
capital by the Registrar of Companies in England and Wales.
In addition, FS Africa and Lonrho have agreed that the
Acquisition will be conditional upon the following conditions and,
accordingly, the necessary actions to make the Scheme effective
will not be taken unless the following conditions (as amended if
appropriate) have been satisfied or, where relevant, waived:
(B) insofar as required by law, the relevant Governmental Entity
in South Africa, Botswana, Namibia, Zambia, Kenya and Nigeria
having cleared or been deemed to have cleared the Transaction under
applicable antitrust or merger control rules;
(C) the passing at a General Meeting (or at any adjournment
thereof) of FS Africa of such resolution or resolutions as are
necessary to approve, implement and effect the Offer and the
acquisition of any Lonrho Shares;
(D) except as Disclosed, there being no provision of any
agreement, arrangement, licence, permit or other instrument to
which any member of the Wider Lonrho Group is a party or by or to
which any such member or any of its assets may be bound, entitled
or subject, which in consequence of the Acquisition or the proposed
acquisition of any shares or other securities in Lonrho or because
of a change in the control or management of Lonrho or otherwise,
would or might reasonably be expected to, in each case to an extent
which is material in the context of the Wider Lonrho Group taken as
a whole, result in:
(i) any moneys borrowed by or any other indebtedness (actual or
contingent) of, or grant available to any such member, being or
becoming repayable or capable of being declared repayable
immediately or earlier than their or its stated maturity date or
repayment date or the ability of any such member to borrow moneys
or incur any indebtedness being withdrawn or inhibited or being
capable of becoming or being withdrawn or inhibited;
(ii) any such agreement, arrangement, licence, permit or
instrument or the rights, liabilities, obligations or interests of
any such member thereunder being terminated or adversely modified
or affected or any obligation or liability arising or any adverse
action being taken or arising thereunder;
(iii) any assets or interests of any such member being or
falling to be disposed of or charged or any right arising under
which any such asset or interest could be required to be disposed
of or charged in each case other than in the ordinary course of
business;
(iv) the creation, save in the ordinary and usual course of
business, or enforcement of any mortgage, charge or other security
interest over the whole or any part of the business, property or
assets of any such member;
(v) the rights, liabilities, obligations or interests of any
such member in, or the business of any such member with, any
person, firm or body (or any arrangement or arrangements relating
to any such interest or business) being terminated, adversely
modified or affected;
(vi) the value of any such member or its financial or trading
position or prospects being prejudiced or adversely affected;
(vii) any such member ceasing to be able to carry on business
under any name under which it presently does so;
(viii) the creation of any liability, actual or contingent, by
any such member other than trade creditors or other liabilities
incurred in the ordinary course of business; or
(ix) any requirement on any such member to acquire, subscribe,
pay up or repay any shares or other securities (other than
contemplated by the terms of the Scheme),
and no event having occurred which, under any provision of any
agreement, arrangement, licence, permit or other instrument to
which any member of the Wider Lonrho Group is a party or by or to
which any such member or any of its assets may be bound, entitled
or subject, would or might reasonably be expected to, in each case
to an extent that is material in the context of the Wider Lonrho
Group, taken as a whole, result in any of the events or
circumstances as are referred to in sub-paragraphs (i) to (viii) of
this condition;
(E) no government or governmental, quasi-governmental, supranational, statutory, regulatory, environmental or investigative body, court, trade agency, association, institution or any other body or person whatsoever in any jurisdiction (each a "Third Party") having decided to take, institute, implement or threaten any action, proceeding, suit, investigation, enquiry or reference, or enacted, made or proposed any statute, regulation, decision or order, or having taken any other steps which would or might reasonably be expected to (to an extent which is material in the context of the Wider Lonrho Group or the Wider FS Africa Group, as the case may be, in either case, taken as a whole):
(i) require, prevent or delay the divestiture, or alter the
terms envisaged for any proposed divestiture by any member of the
Wider FS Africa Group or any member of the Wider Lonrho Group of
all or any portion of their respective businesses, assets or
property or impose any limitation on the ability of any of them to
conduct their respective businesses (or any of them) or to own any
of their respective assets or properties or any part thereof;
(ii) require, prevent or delay the divestiture by any member of
the Wider FS Africa Group of any shares or other securities in
Lonrho;
(iii) impose any limitation on, or result in a delay in, the
ability of any member of the Wider FS Africa Group directly or
indirectly to acquire or to hold or to exercise effectively any
rights of ownership in respect of shares or loans or securities
convertible into shares or any other securities (or the equivalent)
in any member of the Wider Lonrho Group or the Wider FS Africa
Group or to exercise management control over any such member;
(iv) otherwise adversely affect the business, assets, profits or
prospects of any member of the Wider FS Africa Group or of any
member of the Wider Lonrho Group;
(v) make the Offer or its implementation or the acquisition or
proposed acquisition by FS Africa or any member of the Wider FS
Africa Group either of any shares or other securities in, or
control of Lonrho void, illegal, and/or unenforceable under the
laws of any jurisdiction, or otherwise, directly or indirectly,
restrain, restrict, prohibit, delay or otherwise interfere with the
same, or impose additional conditions or obligations with respect
thereto, or otherwise challenge or interfere therewith;
(vi) require any member of the Wider FS Africa Group or the
Wider Lonrho Group to offer to acquire any shares or other
securities (or the equivalent) or interest in any member of the
Wider Lonrho Group or the Wider FS Africa Group owned by any third
party;
(vii) impose any limitation on the ability of any member of the
Wider Lonrho Group to co-ordinate its business, or any part of it,
with the businesses of any other members; or
(viii) result in any member of the Wider Lonrho Group ceasing to
be able to carry on business under any name under which it
presently does so,
and all applicable waiting and other time periods during which
any such Third Party could institute, implement or threaten any
action, proceeding, suit, investigation, enquiry or reference or
any other step under the laws of any jurisdiction in respect of the
Offer or the acquisition or proposed acquisition of any Lonrho
Shares having expired, lapsed or been terminated;
(F) all necessary filings or applications which are necessary or
reasonably considered appropriate having been made in connection
with the Offer and all statutory or regulatory obligations in any
jurisdiction having been complied with in connection with the Offer
or the acquisition by any member of the Wider FS Africa Group
either of any shares or other securities in, or control of, Lonrho
and all authorisations, orders, recognitions, grants, consents,
licences, confirmations, clearances, permissions and approvals,
reasonably deemed necessary or appropriate by FS Africa for or in
respect of the Offer, or the proposed acquisition either of any
shares or other securities in, or control of, Lonrho by any member
of the Wider FS Africa Group having been obtained in terms and in a
form reasonably satisfactory to FS Africa from all appropriate
Third Parties or persons with whom any member of the Wider Lonrho
Group has entered into contractual arrangements and all such
authorisations, orders, recognitions, grants, consents, licences,
confirmations, clearances, permissions and approvals together with
all authorisations orders, recognitions, grants, licences,
confirmations, clearances, permissions and approvals necessary or
appropriate to carry on the business of any member of the Wider
Lonrho Group remaining in full force and effect and all filings
necessary for such purpose have been made and there being no notice
or intimation of any intention to revoke or not to renew any of the
same at the time at which the Offer becomes otherwise unconditional
and all necessary statutory or regulatory obligations in any
jurisdiction having been complied with;
(G) except as Disclosed, no member of the Wider Lonrho Group having, since 31 December 2012:
(i) save as between Lonrho and wholly-owned subsidiaries of
Lonrho or for Lonrho Shares issued pursuant to the vesting of
awards and/or the exercise of options granted under the Lonrho
Share Plans or on conversion of the Lonrho Convertible Bonds,
issued or agreed to issue, authorised or proposed the issue of
additional shares (or other securities) of any class or of Lonrho
Convertible Bonds, or securities convertible into, or rights,
warrants or options/awards to subscribe for, or acquire, any such
shares or convertible securities;
(ii) save as between Lonrho and wholly-owned subsidiaries of
Lonrho or for the grant of options/awards under the Lonrho Share
Plans or issue of Lonrho Convertible Bonds, issued or agreed to
issue, authorised or proposed the issue of securities convertible
into shares of any class or rights, warrants or options to
subscribe for, or acquire, any such shares or convertible
securities;
(iii) other than to another member of the Lonrho Group,
recommended, declared, paid or made or proposed to recommend,
declare, pay or make any bonus, dividend or other distribution
whether payable in cash or otherwise;
(iv) save for intra-Lonrho Group transactions, merged or
demerged with any body corporate or acquired or disposed of or
transferred, mortgaged or charged or created any security interest
over any assets or any right, title or interest in any asset
(including shares and trade investments) or authorised or proposed
or announced any intention to propose any merger, demerger,
acquisition or disposal, transfer, mortgage, charge or security
interest, in each case, other than in the ordinary course of
business and in any such case to an extent which is material in the
context of the Wider Lonrho Group taken as a whole;
(v) save for intra-Lonrho Group transactions, made or authorised
or proposed or announced an intention to propose any change in its
loan capital;
(vi) issued, authorised or proposed the issue of any debentures
or (save for intra-Lonrho Group transactions), save in the ordinary
course of business, incurred or increased any indebtedness or
become subject to any contingent liability which is material in the
context of the Wider Lonrho Group taken as a whole;
(vii) purchased, redeemed or repaid or announced any proposal to
purchase, redeem or repay any of its own shares or other securities
or reduced or, save in respect to the matters mentioned in
sub-paragraph (i) above, made any other change to any part of its
share capital;
(viii) other than pursuant to this Offer implemented, or
authorised, proposed or announced its intention to implement, any
reconstruction, amalgamation, scheme, commitment or other
transaction or arrangement otherwise than in the ordinary course of
business which is material in the context of the Wider Lonrho Group
taken as a whole;
(ix) entered into, or varied the terms of, or made any offer
(which remains open for acceptance) to enter into or vary to a
material extent the terms of, any agreement, arrangement,
instrument, commitment or obligation with or for the benefit of any
of the directors or, except for salary increases, bonuses or
variations of terms in the ordinary course, senior executives;
including any retirement, death or disability benefit or any share
option or bonus scheme;
(x) entered into or varied to a material extent or authorised,
proposed or announced its intention to enter into or vary to a
material extent any contract, transaction or commitment (whether in
respect of capital expenditure or otherwise) which is of a long
term, onerous or unusual nature or magnitude or which is or could
be restrictive on the businesses of any member of the Wider Lonrho
Group or the Wider FS Africa Group or which involves or might
reasonably be expected to involve an obligation of such a nature or
magnitude or which is other than in the ordinary course of business
which is material in the context of the Wider Lonrho Group taken as
a whole;
(xi) terminated or varied to a material extent the terms of any
agreement or arrangement between any member of the Wider Lonrho
Group and any other person in a manner which would or might have a
material adverse effect on the financial position or prospects of
the Wider Lonrho Group taken as a whole;
(xii) (other than in respect of a member which is dormant and
was solvent at the relevant time) taken any corporate action or had
any legal proceedings started or threatened against it for its
winding-up, dissolution or reorganisation or for the appointment of
a receiver, administrative receiver, administrator, trustee or
similar officer of all or any of its assets or revenues or any
analogous proceedings in any jurisdiction or had any such person
appointed;
(xiii) except in the ordinary course of business entered into
any contract, transaction or arrangement which would be restrictive
to a material extent on the business of any member of the Wider
Lonrho Group or the Wider FS Africa Group other than to a nature
and extent which is normal in the context of the business
concerned;
(xiv) except in the ordinary course of business and/or in
respect of claims between Lonrho and any wholly owned subsidiary of
Lonrho waived or compromised any claim otherwise than in the
ordinary course of business and which is material in the context of
the Wider Lonrho Group taken as a whole;
(xv) made any alteration to its articles of association (other
than an alteration in connection with the Scheme);
(xvi) entered into any contract, commitment, arrangement or
agreement otherwise than in the ordinary course of business or
passed any resolution or made any offer (which remains open for
acceptance) with respect to or announced any intention to, or to
propose to, effect any of the transactions, matters or events
referred to in this condition G;
(xvii) except in relation to changes made or agreed as a result
of, or arising from, changes to legislation, having made or agreed
or consented to any change to:
(1) the terms of the trust deeds constituting the pension
scheme(s) established by any member of the Wider Lonrho Group for
its directors, employees or their dependents;
(2) the contributions payable to any such scheme(s) or to the
benefits which accrue or to the pensions which are payable
thereunder;
(3) the basis on which qualification for, or accrual or
entitlement to, such benefits or pensions are calculated or
determined; or
(4) the basis upon which the liabilities (including pensions) of
such pension schemes are funded, valued or made,
to an extent which is in any case material in the context of the
Wider Lonrho Group
(xviii) (except in relation to changes made or agreed as a
result of, or arising from, changes to legislation) proposed,
agreed to provide or modified the terms of any Lonrho Share Plans
incentive scheme or other benefit relating to the employment or
termination of employment of any person employed by the Wider
Lonrho Group which are material in the context of the Wider Lonrho
Group taken as a whole; or
(xix) having taken (or agreed or proposed to take) any action
which requires, or would require, the consent of the Panel or the
approval of Lonrho Shareholders in general meeting in accordance
with, or as contemplated by, Rule 21.1 of the City Code other than
in relation to the Transaction,
and, for the purposes of paragraphs (iii), (iv), (v) and (vi) of
this condition, the term "Lonrho Group" shall mean Lonrho and its
wholly-owned subsidiaries;
(H) except as Disclosed since 31 December 2012:
(i) no adverse change or deterioration having occurred in the
business, assets, financial or trading position or profits or
prospects of any member of the Wider Lonrho Group which is material
in the context of the Wider Lonrho Group taken as a whole;
(ii) no litigation, arbitration proceedings, prosecution or
other legal proceedings to which any member of the Wider Lonrho
Group is or may become a party (whether as a plaintiff, defendant
or otherwise) and no investigation by any Third Party against or in
respect of any member of the Wider Lonrho Group having been
instituted announced or threatened by or against or remaining
outstanding in respect of any member of the Wider Lonrho Group
which in any such case might be reasonably expected to have a
material adverse affect on the Wider Lonrho Group taken as a
whole;
(iii) no contingent or other liability having arisen other than
in the ordinary course of business which is reasonably likely to
adversely affect any member of the Wider Lonrho Group to an extent
which is material in the context of the Wider Lonrho Group taken as
a whole; or
(iv) no steps having been taken which are reasonably likely to
result in the withdrawal, cancellation, termination or modification
of any licence held by any member of the Wider Lonrho Group which
is necessary for the proper carrying on of its business and the
withdrawal, cancellation, termination or modification of which
might reasonably be expected to have a material adverse effect on
the Wider Lonrho Group taken as a whole;
(I) except as Disclosed, FS Africa not having discovered:
(i) that any financial, business or other information concerning
the Wider Lonrho Group as contained in the information publicly
disclosed at any time by or on behalf of any member of the Wider
Lonrho Group is misleading, contains a material misrepresentation
of fact or omits to state a fact necessary to make that information
not misleading or in any such case to an extent which is material
in the context of the Wider Lonrho Group taken as a whole; or
(ii) that any member of the Wider Lonrho Group or any
partnership, company or other entity in which any member of the
Wider Lonrho Group has a significant economic interest and which is
not a subsidiary undertaking of Lonrho is otherwise than in the
ordinary course of business subject to any liability (contingent or
otherwise) which is not disclosed in the annual report and accounts
of Lonrho for the year ended 31 December 2012 which is material in
the context of the Wider Lonrho Group taken as a whole; and
(J) except as Disclosed, FS Africa not having discovered that:
(i) any past or present member of the Wider Lonrho Group has
failed to comply with any and/or all applicable legislation or
regulation, of any jurisdiction with regard to the disposal,
spillage, release, discharge, leak or emission of any waste or
hazardous substance or any substance likely to impair the
environment or harm human health or animal health or otherwise
relating to environmental matters, or that there has otherwise been
any such disposal, spillage, release, discharge, leak or emission
(whether or not the same constituted a non-compliance by any person
with any such legislation or regulations, and wherever the same may
have taken place) any of which disposal, spillage, release,
discharge, leak or emission would be likely to give rise to any
liability (actual or contingent) on the part of any member of the
Wider Lonrho Group which in any case, is or might reasonably be
expected to be material in the context of the Wider Lonrho Group
taken as a whole; or
(ii) there is, or is likely to be, for that or any other reason
whatsoever, any liability (actual or contingent) of any past or
present member of the Wider Lonrho Group to make good, repair,
reinstate or clean up any property or any controlled waters now or
previously owned, occupied, operated or made use of or controlled
by any such past or present member of the Wider Lonrho Group, under
any environmental legislation, regulation, notice, circular or
order of any government, governmental, quasi-governmental, state or
local government, supranational, statutory or other regulatory
body, agency, court, association or any other person or body in any
jurisdiction which in any case, is or might reasonably be expected
to be material in the context of the Wider Lonrho Group taken as a
whole.
For the purposes of these conditions the "Wider Lonrho Group"
means Lonrho and its subsidiary undertakings, associated
undertakings and any other undertaking in which Lonrho and/or such
undertakings (aggregating their interests) have a significant
interest and the "Wider FS Africa Group" means FS Africa and its
subsidiary undertakings, associated undertakings and any other
undertaking in which FS Africa and/or such undertakings
(aggregating their interests) have a significant interest and for
these purposes "subsidiary undertaking" and "undertaking" have the
meanings given by the Companies Act 2006, "associated undertaking"
has the meaning given by paragraph 19 of Schedule 6 to the Large
and Medium-sized Companies and Groups (Accounts and Reports)
Regulations 2008 other than paragraph 19(1)(b) of Schedule 6 to
those Regulations which shall be excluded for this purpose, and
"significant interest" means a direct or indirect interest in 20%
or more of the equity share capital (as defined in the Companies
Act 2006).
Part B: Certain further terms of the Transaction
FS Africa reserves the right to waive, in whole or in part, all
or any of conditions (A) to (J) above, except for conditions (A)
and (C), which cannot be waived.
Condition (C) must be fulfilled by, and conditions (B) and (D)
to (J) (inclusive) fulfilled or waived by, no later than 11.59pm on
the date immediately preceding the date of the Scheme Court
Hearing, failing which the Scheme will lapse. FS Africa shall be
under no obligation to waive or treat as satisfied any of
conditions (B) and (D) to (J) (inclusive) by a date earlier than
the latest date specified above for the fulfilment or waiver
thereof, notwithstanding that the other conditions of the offer may
at such earlier date have been waived or fulfilled and that there
are at such earlier date no circumstances indicating that any of
such conditions may not be capable of fulfilment.
If FS Africa is required by the Panel to make an offer for
Lonrho Shares under the provisions of Rule 9 of the City Code, FS
Africa may make such alterations to any of the above conditions as
are necessary to comply with the provisions of that Rule.
The Acquisition will lapse if it is referred to the UK
Competition Commission or is referred to a serious doubts
investigation under Article 6(1)(c) of Council Regulation (EC)
139/2004 before the Court Meeting and the Lonrho General
Meeting.
The Acquisition Price is offered on the basis that Lonrho
Shareholders will not receive any further dividends. If a dividend
were to be declared, the Acquisition Price would be adjusted
downwards on an equivalent basis.
FS Africa reserves the right to elect (with the consent of the
Panel) to implement the Offer by way of a takeover offer (as
defined in Part 28 of the Companies Act 2006). In such event, such
offer will be implemented on the same terms, so far as applicable,
as those which would apply to the Scheme, subject to appropriate
amendments to reflect the change in method of effecting the
Acquisition, including (without limitation and subject to the
consent of the Panel) an acceptance condition that is set at 90%
(or such lesser percentage, being more than 50%, as FS Africa may
decide) (i) in nominal value of the shares to which such offer
relates; and (ii) of the voting rights attached to those shares,
and that is subject to FS Africa and/or (with the consent of the
Panel) any members of the Wider FS Africa Group having acquired or
agreed to acquire, whether pursuant to the offer or otherwise,
shares carrying more than 50% of the voting rights normally
exercisable at a general meeting of Lonrho, including, for this
purpose, any such voting rights attaching to Lonrho Shares that are
unconditionally allotted or issued before the takeover offer
becomes or is declared unconditional as to acceptances, whether
pursuant to the exercise of any outstanding subscription or
conversion rights or otherwise.
The availability of the Acquisition to persons not resident in
the United Kingdom may be affected by the laws of the relevant
jurisdictions. Persons who are not resident in the United Kingdom
should inform themselves about and observe any applicable
requirements.
The Acquisition will be governed by English law and be subject
to the jurisdiction of the English courts, to the conditions set
out below and in the formal Scheme Document. The Acquisition will
comply with the applicable rules and regulations of the Financial
Conduct Authority, the Prudential Regulation Authority, the London
Stock Exchange, the City Code and the JSE.
Each of the Conditions shall be regarded as a separate Condition
and shall not be limited by reference to any other Condition.
APPENDIX 2
SOURCES OF INFORMATION AND BASES OF CALCULATION
In this announcement:
1. Unless otherwise stated financial information relating to the
Lonrho Group has been extracted or derived (without any adjustment)
from the audited annual report and accounts for Lonrho for the year
ended 31 December 2012.
2. The value of the Offer is calculated on the basis of the
fully diluted number of Lonrho Shares in issue referred to in
paragraph 4 below.
3. As at the close of business on 14 May 2013, being the last
business day prior to the date of this announcement, Lonrho had in
issue 1,653,415,048 Lonrho Shares. The International Securities
Identification Number for the Lonrho Shares is GB0002568813.
4. The fully diluted share capital of Lonrho (being
1,702,140,760 Lonrho Shares) is calculated on the basis of:
-- the number of issued Lonrho Shares referred to in paragraph 3 above; and
-- any further Lonrho Shares which may be issued on or after the
date of this announcement on the exercise of in the money options
or vesting of awards under the Lonrho Share Plans and the Lonrho
Warrants, amounting in aggregate to 48,725,712 Lonrho Shares.
5. Unless otherwise stated, all prices and closing prices for
Lonrho Shares are closing middle market quotations derived from the
London Stock Exchange Daily Official List (SEDOL).
6. The premium calculations to the price per Lonrho Share have
been calculated by reference to a price of 5.2 pence per Lonrho
Share, being the closing price on 14 May 2013, the last business
day prior to the date of this announcement.
7. The average closing price per Lonrho Share of 7.42 pence over
the six month period ended 14 May 2013 is derived from data
provided by DataStream.
8. As at the close of business on 14 May 2013, being the last
business day prior to the date of this announcement, Lonrho had in
issue $70,000,000 of principal Convertible Bonds due 2015. The
International Securities Identification Number for the Lonrho
Convertible Bonds is XS0549738531.
APPENDIX 3
DETAILS OF IRREVOCABLE UNDERTAKINGS
Lonrho Directors' Irrevocable Undertakings
Name of Lonrho Shareholder Number of Lonrho Percentage of Lonrho
Shares issued share capital
Geoffrey T. White 3,781,666 0.23%
----------------- ----------------------
David J. Armstrong 216,666 0.01%
----------------- ----------------------
Emma K. Priestley 187,926 0.01%
----------------- ----------------------
Ambassador Frances
Cook 342,606 0.02%
----------------- ----------------------
Jean M. Ellis 104,333 0.01%
----------------- ----------------------
These irrevocable undertakings remain binding if a higher
competing offer for Lonrho is made but they cease to be binding if
the Scheme terminates or lapses in accordance with its terms or
otherwise becomes incapable of ever becoming effective, provided
that FS Africa has not, within seven days of the Scheme having so
terminated or lapsed, announced in accordance with Rule 2.7 of the
City Code, that it intends to implement the Transaction instead by
way of an Offer.
Other Irrevocable Undertakings
Name of Lonrho Shareholder Number of Lonrho Percentage of Lonrho
Shares issued share capital
Zesiger Capital
Group LLC 144,311,985 8.73%
----------------- ----------------------
CIM Investment Management
Limited 149,072,619 9.02%
----------------- ----------------------
These irrevocable undertakings cease to be binding if a
competing offer for all of the shares in Lonrho is announced with a
consideration value per share which is not less than 10% greater
than the Transaction Consideration and FS Africa has not within 14
days of the date of the announcement of the competing offer
announced a revised offer the terms of which, in the reasonable
opinion of Jefferies as the independent adviser for the purposes of
Rule 3 of the City Code, provides equal or greater value for Lonrho
Shareholders than that provided under such competing offer.
APPENDIX 4
DIRECTORS OF LONRHO
-- Geoffrey T. White Director and Chief Executive Operator
-- David J. Armstrong Finance Director
-- Emma K. Priestley Executive Director
-- Ambassador Frances Cook Non-Executive Chairman
-- Jean M. Ellis Non-Executive Director
-- Kiran Caldas Morzaria Senior Independent Director
APPENDIX 5
DEFINITIONS
"Acquisition" the proposed acquisition of the
entire issued and to be issued share
capital of Lonrho by FS Africa,
to be effected by the Scheme as
described in this document (or by
the Offer under certain circumstances
described in this document)
"Acquisition Price" the price of 10.25 pence for each
Lonrho Share
"AIM Rules" the AIM Rules for Companies published
by the London Stock Exchange
"AltX" the alternative exchange of the
JSE
"Business Day" a day (other than a Saturday, Sunday,
public or bank holiday) on which
banks are generally open for business
in London other than solely for
trading and settlement in Euro
"Capital Reduction" the proposed reduction of share
capital of Lonrho pursuant to the
Scheme
"City Code" the City Code on Takeovers and Mergers
"Closing Price" the closing middle market quotations
of a share derived from the Daily
Official List of the London Stock
Exchange
"Conditions" the conditions of the Transaction
set out in Appendix 1 to this announcement
"Consortium" the consortium formed by BIH S.A.
and Rainer-Marc Frey for the purpose
of implementing the Acquisition
"Court" the High Court of Justice in England
and Wales
"Court Meeting" the meeting of the Lonrho Shareholders
convened by order of the Court pursuant
to section 899 of the Companies
Act 2006 for the purpose of considering
and, if thought fit, approving the
Scheme (with or without amendment)
and any adjournment thereof
"CREST" the relevant system (as defined
in the Uncertificated Securities
Regulations 2001 (SI 2001/3755)
in respect of which Euroclear UK
& Ireland Limited is the Operator
(as defined in the Regulations)
"Disclosed" the information disclosed by, or
on behalf of Lonrho; (i) in the
annual report and accounts of the
Lonrho Group for the financial year
ended 31 December 2012; (ii) in
the interim management statement
for the first quarter to 31 March
2013; (iii) in this announcement;
(iv) in any other public announcement
by, or on behalf of, Lonrho or Fastjet
Plc in accordance with the Listing
Rules, Disclosure Rules, Transparency
Rules or AIM Rules (as applicable)
prior to the date of this announcement;
or (v) in writing prior to the date
of this announcement and addressed
directly to FS Africa (or its respective
officers, employees, agents or advisors)
"Effective Date" the date on which the Scheme becomes
effective in accordance with its
terms
"FCA" the Financial Conduct Authority
"FS Africa" FS Africa Ltd, incorporated in England
and Wales with registered number
8502829
"Governmental Entity" any court, administrative body,
local authority or other governmental
or quasi-governmental entity with
competent jurisdiction, any supra-national,
national, federal, state, municipal,
provincial or local governmental,
regulatory or administrative authority,
agency, commission, court, tribunal,
arbitral body, self-regulated entity,
private body exercising any regulatory,
taxing, importing or other governmental
or quasi-governmental authority
or other governmental entity
"Investec" Investec Bank plc
"Jefferies" Jefferies International Limited
"JSE"" JSE Limited (Registration number
2005/022939/06), a public company
incorporated in accordance with
the laws of South Africa and licensed
as an exchange under the South African
Securities Services Act, 2004 (Act
36 of 2004), as amended
"JSE Listings Requirements" the Listings Requirements as published
by the JSE, as amended from time
to time;
"London Stock Exchange" London Stock Exchange plc
"Lonrho" Lonrho plc, incorporated in England
and Wales with registered number
2805337
"Lonrho ADRs" an American Depositary Receipt evidencing
a Lonrho American depositary share,
which represents one hundred Lonrho
Shares
"Lonrho Convertible Bonds" the $70 million 7% Convertible bonds
due 2015 issued by Lonrho in October
2010
"Lonrho Convertible Bondholders" holders of the Lonrho Convertible
Bonds
"Lonrho Directors" the persons whose names are set
out in Appendix 4 of this document
or, where the context so requires,
the directors of Lonrho from time
to time.
"Lonrho General Meeting" the general meeting of Lonrho Shareholders
to be convened to consider and if
thought fit pass, inter alia, a
special resolution in relation to
the Scheme and the Acquisition
"Lonrho Group" has the meaning given to it in paragraph
G of Appendix 1
"Lonrho Shareholders" the holders of Lonrho Shares
"Lonrho Share Plans" the Lonrho plc Unapproved Company
Share Option Plan, the Lonrho plc
Performance Share Plan and the Lonrho
plc Sharesave Scheme
"Lonrho Shares" the ordinary shares of one (1) pence
each in the capital of Lonrho
"Lonrho Warrants" warrants over Lonrho Shares granted
pursuant to the warrant instrument
dated 10 January 2012
"Meetings" the Court Meeting and the Lonrho
General Meeting
"Offer" should the Transaction be implemented
by way of a takeover offer as defined
in Chapter 3 of Part 28 of the Companies
Act 2006, the recommended offer
to be made by or on behalf of FS
Africa to acquire the entire issued
and to be issued ordinary share
capital of Lonrho and, where the
context admits, any subsequent revision,
variation, extension or renewal
of such offer
"Offer Document" should the Transaction be implemented
by means of the Offer, the document
to be sent to Lonrho Shareholders
which will contain, inter alia,
the terms and conditions of the
Offer
"Offer Period" the period commencing on the date
of this announcement and ending
on the earlier of the date on which
the Scheme becomes effective and/or
the date on which the Scheme lapses
or is withdrawn (or such other date
as the Panel may decide)
"Official List" the official list maintained by
the UK Listing Authority
"Opening Position Disclosure" an announcement containing details
of interests or short positions
in, or rights to subscribe for,
any relevant securities of a party
to the offer if the person concerned
has such a position
"Overseas Shareholders" Scheme Shareholders who are resident
in, ordinarily resident in, or citizens
of, jurisdictions outside the United
Kingdom
"Panel" the UK Panel on Takeovers and Mergers
"Reduction Court Order" the order of the Court under section
648 of the Companies Act 2006 confirming
the Capital Reduction
"Restricted Jurisdiction" any jurisdiction where local laws
or regulations may result in a significant
risk of civil, regulatory or criminal
exposure if information concerning
the Transaction is sent or made
available to Lonrho Shareholders
in that jurisdiction
"Scheme" the proposed scheme of arrangement
under Part 26 of the Companies Act
2006 between Lonrho and Lonrho Shareholders
to implement the Transaction
"Scheme Court Hearing" the hearing of the Court to sanction
the Scheme under section 899 of
the Companies Act 2006
"Scheme Court Order" the order of the Court sanctioning
the Scheme under section 899 of
the Companies Act 2006
"Scheme Document" the document to be dispatched to
Lonrho Shareholders including the
particulars required by section
897 of the Companies Act 2006
"Scheme Shareholder" holders of Scheme Shares
"Scheme Shares" 1. the Lonrho Shares in issue at
the date of the Scheme Document;
2. any Lonrho Shares issued after
the date of the Scheme Document
and prior to the Voting Record Time;
and
3. any Lonrho Shares issued at or
after the Voting Record Time and
prior to 6.00 p.m. on the day before
the date on which the Reduction
Court Order is made in respect of
which the original or any subsequent
holder thereof is bound by the Scheme,
or shall by such time have agreed
in writing to be bound by the Scheme
"Strate" Strate Limited (Registration number
1998/022242/06), a limited liability
public company duly incorporated
in South Africa, which is a registered
central securities depository and
which is responsible for the electronic
settlement system used by the JSE
"Subsidiary" has the meaning given in section
1159 of the Companies Act 2006
\"Transaction" the proposed acquisition of the
entire issued and to be issued share
capital of Lonrho by FS Africa,
to be effected by the Scheme as
described in this document (or by
the Offer under certain circumstances
described in this document)
"Transaction Consideration" the consideration payable in connection
with the Transaction
"UK" or "United Kingdom" the United Kingdom of Great Britain
and Northern Ireland
"UK Listing Authority" the FCA and the Prudential Regulation
Authority as the competent authority
for listing in the United Kingdom
"US" or "United States" the United States of America, its
territories and possessions, any
state of the United States of America
and the District of Columbia
"Voting Record Time" 6.00 p.m. on the day prior to the
day immediately before the Court
Meeting or any adjournment thereof
(as the case may be)
"Wider FS Africa Group" has the meaning given in Appendix
1
"Wider Lonrho Group" has the meaning given in Appendix
1
This information is provided by RNS
The company news service from the London Stock Exchange
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