LonZim Plc Buys Back 4,374,00

RNS Number : 6719V

LonZim PLC

15 July 2009

 



15th July 2009

LonZim Plc Buys Back 4,374,000 Shares

Lonzim is pleased to announce that on 14 July 2009 it bought back on the open market 4,374,000 ordinary shares in its issued share capital at 30.5p per share representing 12% of the issued ordinary capital of the Company. The buyback was carried out in the open market in accordance with the Isle of Man laws and the articles of association of the Company.

The 4,374,000 shares have been purchased by the Company and will be cancelled resulting in the issued share capital of the Company being reduced from 36,450,000 ordinary shares to 32,076,000 ordinary shares.

AMB Capital (Ireland) Limited ('AMB') has previously notified the Company that it holds 22.12% of the issued share capital of the Company and has recently informed the Company of its intention to place into the market up to 13% of its holding in the issued share capital of Company representing up to 4,738,500 ordinary shares. As separately announced today the Company has now received formal notification from AMB that it has disposed of 4,700,000 shares in the capital of the Company that it owns.

AMB is a substantial shareholder in Lonzim Plc and as such if any of the 4,374,000 ordinary shares bought back by Lonzim were placed into the market by AMB then such an acquisition would constitute a related party transaction under the AIM Rules for Companies. For the avoidance of any doubt the directors of the Company consulted with the Company's nominated adviser WH Ireland Ltd, as to the terms of the buy back of the shares and following that consulation they consider the terms to be fair and reasonable in so far as shareholders are concerned whether or not they were acquired from AMB. 

David Lenigas said:

'The timing couldn't be better to buy back these shares as we believe it will coincide with the economic recovery in Zimbabwe, provide value to our shareholders and continue Lonzims strategy for future growth.'

LonZim Plc	[phone]
David Lenigas, Executive Chairman	[phone]
Geoffrey White, Chief Executive Officer	[phone]
WH Ireland Ltd: NOMAD and Broker
James Joyce	[phone]
Sarang Shah
Philip Haydn-Slater (Broker)
Pelham
Charles Vivian	[phone] [phone]
James MacFarlane	[phone] [phone]

 

END

 

 

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