Lonrho: Amendment of Certain Existing Staff Options and Grant of New Share Options

14 January 2009
Content from a Premium Partner
Lonrho (London)
press release

The Board of Lonrho Plc ("the Company") has, as a result of the impact of the global economic downturn on the Company's share price, been reviewing the effectiveness of the Company's share option plan which is used to incentivise and retain employees, consultants and directors. Having considered the current terms of the existing and previously announced share options the Board, on the 13thJanuary 2009, determined that the current share options will not achieve their objective of incentivising and retaining staff. At the Board's request, the Remuneration Committee has reviewed the situation and recommended, and the Board has approved that the exercise price relating to 20,915,000 existing options to current employees, consultants and directors representing 2.74% of the current issued share capital of the Company be amended to 6.5 pence per share. All the other terms and conditions of these existing share options remain the same as previously announced.

Following the new appointment to the Board of non-executive director Ambassador Frances Cookand Finance Director David Armstrong theBoard has, on the recommendation of its remuneration committee, on the 13thJanuary 2009 granted new options over, in aggregate,10,000,000ordinary shares of 1peach in the share capital of the Companyat an exercise price of 6.5pencetothe newBoard members as well as existingdirectors,senioremployees andconsultants allocated as toDavid Lenigas(Executive Chairman) 2,500,000; Geoffrey White (Chief Executive Officer) 2,000,000;EmmaDe Borchgrave (Executive Director) 1,500,000;David Armstrong(Finance Director) 1,000,000; AmbassadorFrances Cook(Non-Executive Director) 500,000;Donald Strang(Non-ExecutiveDirector)500,000;Jean Ellis(Non- Executive Director) 500,000 and senior management and consultants 2,000,000.The grant of the new options was made under the Company's Unapproved Share Option Plan other than those to the non-executive directors and a consultant (whose options were granted under stand-alone option agreements on similar terms to those under the Unapproved Company Share Option Plan), each with an exercise period of five years.

Following the amendment to the exercise price of the existing share options and the grant of the new options the directors of the Company now have the following options over shares in the capital of the Company at an exercise price of 6.5 pence:David Lenigas(Executive Chairman) 11,365,000; Geoffrey White (Chief Executive Officer) 5,565,000;EmmaDe Borchgrave (Executive Director) 4,565,000;David Armstrong(Finance Director) 1,000,000; AmbassadorFrances Cook(Non-Executive Director) 500,000;Donald Strang(Non-ExecutiveDirector)1,200,000;Jean Ellis(Non- Executive Director) 850,000. The total number of options held by the board over shares in the capital of the Company is therefore in aggregate 25,045,000 options representing 3.28% of the current issued share capital of the Company

The total number of options granted over shares in the capital of the Company is now 37,505,000 options representing 4.91% of the total issued share capital of the Company.

LONRHO ENQUIRIES

LonrhoPlc +44(0)2070165105

DavidLenigas,Executive Chairman +44(0)7881825378

Geoffrey White, Chief Executive Officer +44 (0)7717 307 308

Emmade Borchgrave,Executive Director +44(0)7867785177

Pelham PR

CharlesVivian +44(0)2077436672, +44(0)7977297903

James MacFarlane +44(0)2077436375

Collins Stewart Europe : NOMAD

Hugh Field +44(0)7841 672831, +44 (0) 20 7523 8350

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