Lonrho Regulatory News (LONR)

4 Dec 2009 07:00



4 December 2009

Lonrho plc

("Lonrho" or "the Company")

Lonrho raises £16.025m (US$ 26.5m) from existing shareholders in a placing of 160,257,213 Ordinary Shares

The Board of Lonrho is pleased to announce that the Company has raised £16.025m, gross, by way of a placing of 160,257,213 new ordinary shares of 1 pence each ("Placing Shares") in the share capital of the Company at 10 pence per Placing Share ("the Placing"). 

The Placing Shares have been unconditionally placed save as to their Admission. Application has been made for admission of the Placing Shares to trading on AIM and admission is expected to take place on 9 December 2009.

The Placing Shares will together represent approximately 17% of the Company's enlarged issued share capital and the total number of shares in issue following completion of the Placing will be 959,353,712.

The fundraising has been effected by an irrevocable placing to existing shareholders under a cash box structure. The new ordinary shares will, when issued, rank pari passu in all respects with the existing ordinary shares of the Company.

The Company intends to call a General meeting to increase its authorities to issue further Ordinary Shares to raise further working capital for the Group if demand exists.

David Lenigas, executive chairman of Lonrho, commented:

"The placement of £16m was fulfilled wholly by existing shareholders and is a strong endorsement of the Company's excellent progress over the past twelve months. The proceeds of the fund raising will provide both further working capital for the Group's existing businesses and the ability for Company to increase it's equity stake in its core established businesses, including its agricultural and building divisions for the benefit of shareholders." 

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