Companies: LONR   

African conglomerate Lonrho has raised £32 million privately for its Zimbabwe arm, which plans a £70 million AIM float.

AIM-quoted Lonrho, headed by entrepreneurial Australian David Lenigas, has raised the pre-float money at 70p a share for its newly established LonZim subsidiary from a variety of investors, including US and Middle East hedge funds and James Packer from Down Under. LonZim, which says it intends to focus on joint ventures with local entrepreneurs in hotels, motor dealerships, transport, support services, infrastructure and natural resources, expects to price its later £70 million AIM float at 100p a share.

Lenigas makes it clear he is striving to recreate Lonrho as a force in African commercial development, in the manner of the company’s late founder and combative driving force ‘Tiny’ Rowland. He insists there are plenty of talented Zimbabwean business people planning for life after the ageing and dictatorial President Mugabe finally departs. Lenigas argues worthwhile joint venture deals — not takeovers — can be struck with them. Removing ‘rho’, with its echoes of white-ruled Rhodesia, from the local company’s name and substituting ‘Zim’, is seen as a tactful move.

Shares in Lonrho, formerly Lonrho Africa, have been on a recovery path since 2004, rising from 9p to 42.75p, more than twice Growth Company Investor’s recommendation at 20.25p last year. Hold on.

Lonrho	AIM	£19.34m	4.25p	0.25p
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Other company articles:
Gem find cheers Lonrho			30/04/2008
Lenigas immersed in acoustics			21/02/2008
Lonrho backs Zimbabwe			02/10/2007
Lonrho moots £70m Zimbabwe float			24/07/2007