Cambria Africa Regulatory News (CMB)

30 Jul 2009 16:44



30 July 2009

LonZim Plc

("LonZim" or the "Company")

LonZim decisively wins EGM battle and defeats corporate raider AMB Capital 

LonZim (AIM:LZM) the investment company created to support and benefit from economic recovery in Zimbabwe is pleased to announce that at today's Extraordinary General Meeting, that had been requisitioned by hostile shareholder AMB Capital, all of the proposed hostile resolutions were defeated.

AMB Capital had called the EGM to replace the existing executive directors of the Company and change the Company's mandate from one of investment in Zimbabwe to one of disinvestment and the return of Company funds to shareholders. 

In a strong vote of confidence in the Company, its Directors and its objectives, a significant majority of shareholders voted to support the existing Board and maintain the Company's current investment mandate to develop a business portfolio in Zimbabwe.

David Lenigas, LonZim Executive Chairman, commented:

"We are extremely pleased with the result of today's EGM. An overwhelming majority of our shareholders voted against the proposals requisitioned by corporate raider AMB Capital, demonstrating their support for the Directors, the Company, and the future of Zimbabwe. Shareholder confidence is essential and with the significant support demonstrated at the EGM, LonZim can continue to developing its growing businesses in Zimbabwe. 

"LonZim is building a strong portfolio of businesses in the industry sectors that that the Company believes will be the first to recover in Zimbabwe. We believe that the Company's current investments will deliver significant value for both LonZim's shareholders and Zimbabwe.

"We are now experiencing positive signs of the beginning of a recovery in Zimbabwe. The IMF has forecast 3% to 3.7% real GDP growth for Zimbabwe for 2009, the first positive GDP figure since 1997. We will continue to seek and evaluate new opportunities in this opportune market."