Placing of £4.98 million

RNS Number : 9315W

LonZim PLC

29 November 2010

 



29 November 2010

LONZIM PLC

("LonZim" or the "Company")

Placing of £4.98 million

LonZim Plc (AIM:LZM) is pleased to announce that  £4,987,904 has been placed with new and existing institutions and shareholders, at a placing price of 28 pence per share. The placing will provide working capital for the Group's existing businesses and will provide the Company with the ability to continue implementing its investment strategy. 

The placing has raised £4,987,904 (before expenses), equivalent to approximately US$7,862,632, by means of the issue of 17,813,944 new ordinary shares in the Company (the "Placing Shares") at 28 pence per Ordinary Share (the "Placing").  .

The Company has received legally binding acceptances in respect of the Placing Shares. Once all the funds have been cleared the placing will be completed and the Company will make an announcement of the issue of the Placing Shares and their date of expected admission to AIM. The Placing Shares will rank pari passu in all respects with the Company's existing ordinary shares in issue.

Following admission to trading on AIM, the Company's total issued share capital will be 54,145,469 ordinary shares. The Placing Shares will represent approximately 32.9% of the Company's enlarged issued share capital

The Placing has been conducted amongst new and existing institutions and shareholders including Lonrho Plc who prior to the Placing held 24.61% of the issued share capital of the Company. Lonrho Plc has maintained its percentage shareholding of 24.61% of the issued share capital of the Company by subscribing for 4,384,011 new ordinary shares in the Company. Lonrho is a substantial shareholder in the Company and therefore its participation in the placing is a related party transaction for the purposes of the AIM Rules for Companies.

Having consulted with WH Ireland, the nominated advisor to the Company, the independent non-executive directors of the Company, being Paul Heber, Colin Orr-Ewing and Paul Turner  who are not also directors of Lonrho, consider the terms of Lonrho Plc's participation in the Placing to be fair and reasonable in so far as all the shareholders of the Company are concerned.

David Lenigas, Executive Chairman of Lonrho commented: 

"LonZim is reporting strong growth in turnover as the economy in Zimbabwe shows signs of recovering. This placement to existing and new institutions will enable the Company to continue to benefit from the opportunities for growth within Zimbabwe. LonZim remains confident that Zimbabwe has great economic potential for recovery and that forecast recovery in the agricultural, mineral and tourism sectors is becoming evident."

ENQUIRIES

LonZim Plc	[phone]
David Lenigas, Executive Chairman	[phone]
Geoffrey White, Chief Executive Officer  David Armstrong, Finance Director Emma Priestley, Executive Director	[phone] [phone] [phone]
WH Ireland Ltd: NOMAD and Broker
James Joyce	[phone]
Pelham Bell Pottinger
Charles Vivian	[phone] [phone]
James MacFarlane	[phone] [phone]

 

END

 

 

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