Lonrho Regulatory News (LONR)

9 Dec 2009 07:00



9 December 2009

LONRHO PLC

("Lonrho" or the "Company")

Lonrho private placement of £9 million

Lonrho Plc (AIM:LONR) is pleased to announce that following a successful £16.0m placement at 10 pence per share to existing major shareholders, as announced on the 4th December 2009, an additional £9.1m has been placed with new and existing institutions ,at a placing price of 10 pence per share, subject to shareholder approval. The two placings will provide a total of £25.1m for working capital for the Group's existing businesses and will provide the Company with the ability to increase its equity stake in its core established businesses, including its agricultural and building divisions. 

The placing, announced today, has raised £9.1million (before expenses), equivalent to approximately US$ 14.8 million, by means of the issue of 90,925,000 new ordinary shares in the Company (the "Placing Shares") at 10 pence per Ordinary Share (the "Placing"). The issue of the Placing Shares is subject to shareholder approval at a general meeting of the Company, which is expected to be held on Tuesday 29th December 2009. Subject to passing the resolutions, the admission of the Placing Shares to trading on AIM will be on Wednesday 30th December 2009. The Placing Shares will rank pari passu with existing ordinary shares in issue.

The Placing Shares, when issued, would represent approximately 8.66% of the Company's enlarged issued share capital and application will be made for the admission of the Placing Shares to trading on AIM. It is expected that dealings in the Placing Shares will commence at 8.00 a.m. on 30th December 2009. The total number of shares in issue following completion of the Placing would be 1,050,278,712. 

A circular convening the general meeting of the Company to approve, inter alia, the issue of the Placing Shares will be sent to shareholders.

David Lenigas, Executive Chairman of Lonrho commented :

"We are delighted with the support from both existing shareholders and some new significant institutions. I am confident that the £25m now raised will enable Lonrho to increase its stakes in its agriculture and building subsidiaries and puts the Company in a very strong position as we enter 2010."

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