The Board of Lonrho (AIM: LONR), the expanding conglomerate with a structured portfolio of African investments, is pleased to announce that LonZim Plc (LonZim), which has been established by Lonrho for the principal purpose of making investments in Zimbabwe, has successfully concluded its international roadshow and bookbuilding process. LonZim has raised £29.16m (US$ 60 million) at an issue price of 100p per share. Based on 36.45 million shares to be in issue upon Admission to AIM, including 7.3 million shares being received by Lonrho in consideration of non competition clause, and the issue price of 100p per share, the market capitalization of LonZim would be GBP 36.5 million. It is expected that the LonZim shares (Code : LZM) will commence trading on AIM on 11 December 2007.
LonZim has been established to make investments in Zimbabwe and the Beira transport corridor in Mozambique.
Highlights
- LonZim will be the first Zimbabwean focused investment company listed on the London Stock Exchange
- Lonrho is receiving a 20% free-carried interest (7.3 million shares) in LonZim in consideration of granting a non-compete clause in Zimbabwe
- Lonrho will receive a 2% management fee on capital invested by LonZim, (subject to a minimum of $0.5m per annum)
- The African specialist Lonrho management team will oversee all investments
- LonZim will make investments in companies and sectors that the management believe will be best positioned to benefit should there be radical improvements in Zimbabwe’s economy
LonZim
While the LonZim will not have a particular sectoral focus, utilising the investment skills of the Lonrho management team and their advisors, it will seek to identify individual companies in sectors best positioned to benefit should there be radical improvements in Zimbabwe’s economy. The Company may make investments in the tourism, accommodation, infrastructure, transport, commercial and residential property, technology, communications, manufacturing, retail, services, leisure, agricultural and natural resources sectors.
LonZim may also make investments in businesses outside Zimbabwe that have a majority of their operations within Zimbabwe. The Company will also look into expanding businesses and brands currently owned by Lonrho or in which Lonrho has an interest in Zimbabwe. LonZim will only be able to achieve its investment objective in the event the Zimbabwean economy radically improves.
Management
Lonrho will provide LonZim with management services to oversee all transactions and investments in the country. The Lonrho management team has a wealth of skills and expertise in operating in Africa and an extremely successful track record in operating under difficult conditions on the continent. The management team is well positioned to provide LonZim with specialist advice needed to invest successfully under conditions characteristic of Zimbabwe at present.
David Lenigas, Executive Chairman of Lonrho and LonZim commented:
“We are extremely pleased that we have been able to raise the capital required for LonZim to pursue its Zimbabwean focused investment strategy amongst current uncertainty in the global equity markets. We believe that Zimbabwe offers a unique and considerable investment opportunity as a direct result of the current economic climate and as a result of a lack of direct foreign investment.
We believe that Zimbabwe will, in due course, regain its position as a significant economic powerhouse in Africa. LonZim will be ideally placed to establish itself as a major force in the Zimbabwean economy and represents a worldwide pool of institutional investors who understand the potential of Zimbabwe and its significance in Africa. LonZim will be the only Stock Exchange vehicle that has a pure investment focus on Zimbabwe.
ENQUIRIES
Lonrho Plc +44 (0)20 7016 5105
David Lenigas, Executive Chairman +44 (0)7881 825 378
Geoffrey White, Chief Executive Officer +44 (0)7717 307 308
Emma Priestley, Executive Director +44 (0)7867 785 177
Pelham PR Charles Vivian +44 (0) 20 7743 6672, +44 (0) 7977 297903
James MacFarlane +44 (0) 20 7743 6375, +44 (0) 7841 672 831
Collins Stewart Europe: NOMAD to Lonrho Jonny Sloan/Hugh Field +44 (0) 20 7523 8350
NOTES TO EDITORS:
LonZim Management:
The Board currently comprises five directors. Following Admission, the Company intends to appoint additional directors, including a further independent non-executive Director. Any such Directors may be nationals of Zimbabwe. The Board believes that their combined experience in working with projects as principals and as advisers across Africa will give then the skills and contacts to implement LonZim’s strategy successfully.
The Directors of LonZim are as follows:
David Lenigas (age 46), Executive Chairman
David Lenigas holds a Bachelor of Applied Science Degree in Mining Engineering. Currently the Executive Chairman of Lonrho Plc, he has extensive experience operating in the public company environment. Mr Lenigas is also Chairman of Leni Gas & Oil Plc, Chairman of Templar Minerals Limited, Chairman of Nare Diamonds Limited and is a non-executive director of Mediterranean Oil & Gas Plc, Global Coal Management Plc and River Diamonds UK Plc.
Emma Priestley (age 34), Executive Director
Emma Priestley joined Lonrho as an Executive Director after working in investment banking for 5 years following a career as a mining engineer. She has a background in mining and financial services having worked with consultants IMC Mackay & Schnellmann, investment bank CSFB, advisers VSA Resources and, most recently, Ambrian Partners, where she worked as corporate broker and adviser. Ms Priestley is a graduate of Camborne School of Mines, a Chartered Mining Engineer and Chartered Mineral Surveyor.
Geoffrey White (age 46), Executive Director
Geoffrey White, Lonrho’s Chief Executive Officer, has over 25 years of experience working in senior management roles with Thomas Tilling Plc, BTR Plc and Dee Corporation Plc. During the past four years he has worked for the private office of His Highness Sheikh Khalifa Al Thani in London. Mr White previously worked with Hilton International, Ford Motors (PAG), Praton International GmbH, FFS Refiners (Pty) Ltd, Sengamines Sarl, Oryx Natural Resources, African Mining Investments Limited and Pegasus Energy Limited.
Jean Ellis (age 37), Finance Director
Jean Ellis, Lonrho’s Financial Director, is a Chartered Accountant and Chartered Tax Advisor and holds an insolvency practitioners licence. Whilst undertaking the role of Finance Director, she will remain as a partner in the regional firm of Chartered Accountants, Duncan Sheard Glass (“DSG”). Prior to returning to private practice in 2002, Ms Ellis was Group Financial Controller and Tax manager with Lonrho Africa Plc and also holds a number of directorships for its subsidiary companies. Since joining DSG in 2002, Ms Ellis has continued to act as a consultant to Lonrho remaining closely involved in all areas of the Group’s finance and taxation. Ms Ellis has a Bachelor of Arts Degree in Pure Mathematics from Liverpool University.
Paul Herber (age 44), Non-Executive Director
Paul is an investment manager and stockbroker with more than 20 years of experience in global stock markets, following 3 years in the oil industry. Formerly with SGHambros, NatWest and Carr, he is now with bespoke boutique Savoy Investment Management Limited (with in excess of £1.2 billion of private and institutional funds under management), regulated both by the FSA in London and the FSB in Johannesburg. He has a broad pan-African Clientele alongside his domestic UK, European and Bermudian business.
About LONRHO:
Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughout Africa. The Company is listed on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure, transportation, support services and natural resources. The Company has over 20,000 shareholders and substantial institutional backing to support its mandate to build a profitable business that plays a fundamental role in the development of the African economy.
Since 2006, the Company has invested in or acquired control of:
- Hotel Cardoso - www.hotelcardoso.co.mz
- Lonrho Mining - www.lonrhomining.com
- Luba Freeport - www.lubafreeport.com
- Fly540 - www.fly540.com
- Norse Air - www.norseair.co.za
- Swissta Holdings - www.swissta.com
- SA Independent Liner Services – www.saliners.com
- Bytes and Pieces
- Celsys Limited – www.celsys.co.zw
Disclaimer
Some of the information contained in this press release contains forward-looking statements. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are, by their nature, subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. We caution you not to rely on any such statements as statements of historical fact or as guarantees or assurances of future performance. We undertake no obligation to publicly update or revise and forward-looking statements.
This press release is not for distribution (directly or indirectly) in or to the United States, Canada, Australia or Japan.
This press release is not an offer of securities for sale in or into the United States, Canada, Australia or Japan. This press release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any Shares in the Company or LonZim or any other securities, nor shall it (or any part of it), or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefore. In particular, this press release refers to certain events as having occurred which have not occurred at the date it is made available but are expected to occur prior to Admission. This document is not a prospectus and no person should subscribe for or purchase any shares referred to in this document except on the basis of the information in the LonZim Admission Document.
The securities described herein have not been, and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or any U.S. state securities laws. They may not be offered or sold in the United States, except in transactions not subject to or exempt from, the registration requirements of the Securities Act and applicable state laws. The Company does not intend to register any portion of the securities in the United States or to conduct a public offering of securities in the United States. No money, securities or other consideration is being solicited and, if sent in response to the information contained herein, will not be accepted.
