Lonrho agrees bumper takeover deal with Swiss billionaire

Africa-focused mini-conglomerate Lonrho has agreed terms for its takeover almost double its opening market value.

Africa-focused mini-conglomerate Lonrho has agreed terms for its takeover almost double its opening market value.

Lonrho's board has agreed to a cash offer from a company owned by Swiss billionaire Thomas Schmidheiny and hedge fund manager Rainer-Marc Frey.

Shareholders in fully listed Lonrho will receive 10.25p cash per share, which is a premium of 97.1% to the closing price of 5.2p May 14 2013, and a premium of 38.2% to the company's average price for the previous six months.

The deal values Lonrho's fully diluted share capital at close to £174.5m, assuming the exercising of all outstanding in-the-money options, Lonrho long-term incentive plan awards and warrants.

The board of directors, which own 0.28% of the company's shares and are being advised by broker Jefferies, intend to recommend the deal to shareholders and said they will vote in favour of the deal, while also reporting that other major investors who own 17.74% of the shares have agreed to do the same.

Shares in Lonrho were up 89.04% at 9.83p at 09:51 on Wednesday.

OH

Recommended

Too embarrassed to ask: what is short selling?
Too embarrassed to ask

Too embarrassed to ask: what is short selling?

Short sellers are often accused of unfairly driving share prices down to make a quick buck. But short selling is a perfectly legitimate – if risky – t…
26 Jan 2021
Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

The FTSE 100 is set for a makeover with an influx of new tech stocks
UK stockmarkets

The FTSE 100 is set for a makeover with an influx of new tech stocks

The FTSE 100 – the dullest index in the world – is about to reinvent itself as a host of new firms list on the market. The change is long overdue, say…
24 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021
Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021