lonrho africa update

Here comes the money?!

RNS News Item
RNS Number : 8315T
Lonrho PLC
13 December 2011

Proposed Firm Placing and Placing and Open Offer to raise approximately £26.9million gross proceeds

The Board of Directors of Lonrho Plc ("Lonrho" or the "Company") is pleased to announce that it is proposing to raise gross proceeds of approximately £26.9 million (approximately £25.4 million net of expenses), through a firm placing and a placing and open offer involving the issue of 269,498,795 New Ordinary Shares at an issue price of 10 pence per New Ordinary Share.

Highlights

· Gross proceeds of approximately £26.9 million (approximately £25.4 million net of expenses) will be held by the Company in cash or cash equivalents and then used in line with the Group's strategy to fund the development of new business opportunities for the Group to complement its current operations.

· Of the New Ordinary Shares being issued, 161,280,925 of the New Ordinary Shares will be issued through the Firm Placing (comprising approximately 59.8% of the total number of New Ordinary Shares to be issued pursuant to the Capital Raising) and 108,217,870 of the New Ordinary Shares will be issued through the Placing and Open Offer (comprising the remaining 40.2%).

· Issue Price of 10 pence represents a discount of zero per cent. to the Closing Price of 10 pence per Ordinary Share on 12 December 2011 (being the last trading day prior to the date of the announcement of the Capital Raising).

· Application has been made to the UK Listing Authority and the London Stock Exchange for the New Ordinary Shares respectively to be admitted to the Official List and to be admitted to trading on the London Stock Exchange's main market for listed securities. It is expected that Admission will take place on 4 January 2012.

· Panmure Gordon is acting as sponsor, bookrunner and underwriter to the Company in connection with the Capital Raising.

David Lenigas, Executive Chairman, commented:


"We are delighted at the strong level of support from existing and new shareholders for Lonrho to continue to develop and expand its business. We are seeing a growing interest from global institutions in the opportunities to take part in supporting the growth in the agriculture, oil and mineral sectors in Africa, the specific areas where Lonrho operates."