Suspension of dealings in sha

RNS Number : 9146N

LonZim PLC

26 February 2009

 



26 February 2009

LonZim plc

('LonZim' or the 'Company')

Suspension of dealings in the Company's shares

LonZim (AIM: LZM), which was established for the purpose of making investments in Zimbabwe and the Beira corridor in Mozambique, announces that it has acquired 59,682,817 ordinary shares in Lonrho plc, the AIM traded conglomerate with a structured portfolio of African investments ('Lonrho'). The Lonrho shares were acquired over a period of approximately three months and include the acquisition of 55,000,000 ordinary shares in a private placement by Lonrho at a price of 5p per share announced on 11 November 2008. In aggregate, LonZim owns 7.81 per cent. of Lonrho. The total consideration was approximately £2.95 million which was funded out of the Company's cash resources.

Lonrho is a 24.25 per cent. shareholder in LonZim and provides LonZim with management support services. LonZim has six directors. Of the four executive directors of LonZim, three are executive directors of Lonrho and one is a non-executive director of Lonrho. The acquisition of all Lonrho shares was proposed and approved by the LonZim non-executive directors, the executive directors having recused themselves.

The acquisition of Lonrho shares under the private placement arranged by Lonrho constituted a related party transaction within the meaning of the AIM Rules but disclosure was not made of this transaction in the necessary form at that time. Further, the Company did not consult with Collins Stewart Europe Limited ('Collins Stewart'), its nominated adviser, on such transaction and in the circumstances pertaining to it, Collins Stewart is not in a position to advise the Company that the terms of the transaction are fair and reasonable insofar as shareholders are concerned.

A review of the above transactions will be undertaken by the Company and the dealings in the Company's shares on AIM have been suspended pending the results of this review.

Collins Stewart has informed the Company that it will resign as nominated adviser and broker to LonZim. Collins Stewart was not consulted nor made aware by LonZim of its intention to make these acquisitions, the basis therefore, nor that the acquisitions had taken place.

Enquiries:

LonZim Plc	[phone]
David Lenigas, Executive Chairman	[phone]
Geoffrey White, Chief Executive Officer	[phone]
Emma de Borchgrave, Executive Director	[phone]
Pelham Public Relations
Charles Vivian	[phone] [phone]
James MacFarlane	[phone] [phone]

 

END

 

 

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