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.
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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.
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