LAF - Lonrho Plc - Publication of Annual Report and Notice of Annual General8 Mar 2010
LAF
LOLAF                                                                           
LAF - Lonrho Plc - Publication of Annual Report and Notice of Annual General    
Meeting                                                                         
LONRHO PLC                                                                      
(Formerly Lonrho Africa Plc)                                                    
(Incorporated and registered in England and Wales)                              
(Registration number 2805337)                                                   
(Share code: LAF; ISIN number: GB0002568813)                                    
("Lonrho" or "the Company")                                                     
Publication of Annual Report and Notice of Annual General Meeting               
8 March 2010                                                                    
Lonrho (AIM: LONR), the conglomerate with a structured portfolio of African     
investments, is pleased to confirm that its Report and Accounts for the year    
ended 30 September 2009 have been posted to shareholders today, together with a 
Notice of the Annual General Meeting to be held on Wednesday 31 March 2010.     
The proposed resolutions, Annual Report and Accounts are published on the       
Company`s web site (www.lonrho.com) and the full notice for the Annual General  
Meeting is available below.                                                     
LONRHO ENQUIRIES                                                                
Lonrho Plc                                                 +44 (0)20 7016 5105  
David Lenigas, Executive Chairman                          +44 (0)7881 825 378  
Geoffrey White, Chief Executive Officer                    +44 (0)7717 307 308  
David Armstrong, Finance Director                          +44 (0)7833 054 693  
                                                                                
Pelham Bell Pottinger                                                           
Charles Vivian                                            +44 (0) 20 7337 1538  
                                                         +44 (0) 7977 297 903   
James MacFarlane                                          +44 (0) 20 7337 1527  
+44 (0) 7841 672 831   
                                                                                
Beaumont Cornish Limited  (Nomad)                                               
Rosalind Hill Abrahams                                    +44 (0) 20 7628 3396  
Roland Cornish                                            +44 (0) 20 7628 3396  
Notice of Annual General Meeting                                                
NOTICE IS HEREBY GIVEN that the next Annual General Meeting of Lonrho Plc will  
be held at The Great Hall, Merchant Taylors` Hall, 30 Threadneedle Street,      
London, EC2R 8JB at 11.00 am on Wednesday 31 March 2010 to transact the         
following business. Resolutions 1 to 5 inclusive, 7 and 8 will be proposed as   
ordinary resolutions. Resolution 6 will be proposed as a special resolution.    
Ordinary Resolutions                                                            
1.   To receive the Report of the Directors, the accounts for the year      
         ended 30 September 2009, and the auditors` report thereon.             
    2.   To re-elect Mrs. J. M. Ellis, who retires by rotation, as a Director.  
    3.   To re-elect Mr. G. T. White, who retires by rotation, as a Director.   
4.   To re-appoint KPMG Audit Plc as auditors of the Company to hold office 
         from the conclusion of the meeting until the conclusion of the next    
         general meeting of the Company at which financial statements are laid  
         before the Company and to authorise the Directors to agree their       
remuneration.                                                          
    5.   To approve the continuation of the investment strategy as detailed in  
         the circular to the shareholders dated 8 February 2006.                
Special Resolution                                                              
6.   That:                                                                  
         3.1  to comply with new legislation, the articles of association of    
              the Company be amended by deleting the provision which, by virtue 
              of paragraph 42(2) of Schedule 2 to the Companies Act 2006        
(Commencement No 8, Transitional Provisions and Savings) Order    
              2008, is treated as a provision of the articles of association of 
              the Company setting the maximum amount of shares that may be      
              allotted by the Company; and                                      
3.2  the articles of association of the Company be amended by deleting 
              the existing wording of article 3 and replacing it with "Not      
              used".                                                            
Ordinary Resolutions                                                            
7.   That pursuant to section 551 of the Companies Act 2006 (the "Act") the 
         Directors be and are generally and unconditionally authorised to       
         exercise all powers of the Company to allot shares in the Company or   
         to grant rights to subscribe for or to convert any security into       
shares in the Company up to an aggregate nominal amount of GBP1.25     
         million in connection with the proposed acquisition by the Company or  
         any subsidiary of the Company of all or any of the shares in Rollex    
         (Proprietary) Limited and/or Fresh Direct Limited not already owned by 
the Company or a subsidiary of the Company, provided that (unless      
         previously revoked, varied or renewed) this authority shall expire at  
         the conclusion of the Annual General Meeting to be held in 2011, save  
         that the Company may make an offer or agreement before the expiry of   
this authority which would or might require shares to be allotted or   
         rights to subscribe for or to convert any security into shares to be   
         granted after such expiry and the Directors may allot shares or grant  
         such rights pursuant to any such offer or agreement as if the          
authority conferred by this resolution had not expired.                
    8.   That the granting of options over the number of ordinary shares of 1p  
         each ("Ordinary Shares") in the capital of the Company to Directors,   
         employees and consultants of the Company as set out below ("Proposed   
Grantees") be approved and the Directors of the Company be authorised  
         to do all acts and things necessary to ensure the options are granted  
         to the Proposed Grantees.                                              
Name                 Number of share     Exercise price      Period during which
options to be       per Ordinary              exercisable 
                            granted              Share                          
David Lenigas:            20,000,000   Mid market price    From 31 March 2010 to
Executive                                         on 31            30 March 2015
Chairman                               March 2010 + 10%                         
Geoffrey White:           20,000,000   Mid market price    From 31 March 2010 to
Director and CEO                                  on 31            30 March 2015
                                      March 2010 + 10%                          
David Armstrong:           6,500,000   Mid market price    From 31 March 2010 to
Finance Director                                  on 31            30 March 2015
                                      March 2010 + 10%                          
Emma Priestley:            1,000,000   Mid market price    From 31 March 2010 to
Executive                                         on 31            30 March 2015
Director                               March 2010 + 10%                         
Employees and              5,500,000   Mid market price    From 31 March 2010 to
Consultants to                                    on 31            30 March 2015
the Company                            March 2010 + 10%                         
Notes:                                                                          
1.   A member entitled to attend and vote at the above meeting is entitled to   
    appoint one or more proxies to attend and vote in his place. A proxy need   
not be a member of the Company, but is entitled to exercise all or any of   
    the member`s rights to attend and to speak and vote at a meeting of the     
    Company. A member may appoint more than one proxy in relation to the        
    meeting provided that each proxy is appointed to exercise the rights to a   
different share or shares held by him. A form of proxy is enclosed for use  
    at this meeting. If you wish to appoint more than one proxy, please contact 
    our registrars, Equiniti Limited or Computershare Investor Services 2004    
    (Pty) Limited, as appropriate.                                              
2.   To be valid, a completed form of proxy, together with a power of attorney  
    or other authority, if any, under which it is signed (or a notarially       
    certified copy thereof), must be deposited at the offices of the Company`s  
    registrars, Equiniti Limited, Aspect House, Spencer Road, Lancing, West     
Sussex BN99 6GU or Computershare Investor Services 2004 (Pty) Limited,      
    postal address PO Box 61051, Marshalltown 2107, South Africa, not less than 
    48 hours before the time set for the meeting or adjourned meeting (as the   
    case may be).                                                               
In respect of South African shareholders, forms of proxy must only be       
    filled by certificated shareholders or own name dematerialised              
    shareholders. Dematerialised shareholders in South Africa who are not own   
    name dematerialised shareholders must follow the instructions set out in    
note 8 below.                                                               
3.   CREST members who wish to appoint a proxy or proxies through the CREST     
    electronic proxy appointments service may do so for the meeting and any     
    adjournment(s) thereof by using the procedures described in the CREST       
Manual. CREST Personal Members or other CREST sponsored members, and those  
    CREST members who have appointed a voting service provider(s), should refer 
    to their CREST sponsor or voting service provider(s), who will be able to   
    take the appropriate action on their behalf. In order for a proxy           
appointment or instruction made using the CREST service to be valid, the    
    appropriate CREST message (a "CREST Proxy Instruction") must be properly    
    authenticated in accordance with Euroclear specifications and must contain  
    the information required for such instructions, as described in the CREST   
manual. The message, regardless of whether it constitutes the appointment   
    of a proxy or an amendment to the instruction given to a previously         
    appointed proxy must, in order to be valid, be transmitted so as to be      
    received by the issuer`s agent (ID RA19) by the latest time(s) for receipt  
of proxy appointments specified in the notice of meeting. For this purpose, 
    the time of receipt will be taken to be the time (as determined by the      
    timestamp applied to the message by the CREST Applications Host) from which 
    the issuer`s agent is able to retrieve the message by enquiry to CREST in   
the manner prescribed by CREST. After this time any change of instructions  
    to proxies appointed through CREST should be communicated to the appointee  
    through other means. CREST members and, where applicable, their CREST       
    sponsors or voting service providers should note that Euroclear does not    
make available special procedures in CREST for any particular messages.     
    Normal system timings and limitations will therefore apply in relation to   
    the input of CREST Proxy Instructions. It is the responsibility of the      
    CREST member concerned to take (or, if the CREST member is a CREST personal 
member or sponsored member or has appointed a voting service provider(s),   
    to procure that his CREST sponsor or voting service provider(s) take(s))    
    such action as shall be necessary to ensure that a message is transmitted   
    by means of the CREST system by any particular time. In this connection,    
CREST members and, where applicable, their CREST sponsors or voting service 
    providers are referred, in particular, to those sections of the CREST       
    Manual concerning practical limitations of the CREST system and timings.    
    The CREST Manual can be reviewed at                                         
www.euroclear.com/site/public/EUI/Resources/Legaldocumentation/CRESTmanual. 
    The Company may treat as invalid a CREST Proxy Instruction in the           
    circumstances set out in Regulation 35(5)(a) of the Uncertificated          
    Securities Regulations 2001.                                                
4.   If you do not have a Form of Proxy and believe that you should have one, or
    if you require CREST Manual additional forms, please call Equiniti Ltd on   
    0871 384 2383 (or, from outside the United Kingdom, +44 121 415 7047)       
    between 9.00am and 5.00pm Monday to Friday (excluding bank or public        
holidays). Calls to the helpline are charged at 8p per minute from a BT     
    landline and from outside the United Kingdom will be charged at applicable  
    international rates. Different charges may apply to calls from mobile       
    telephones. Please note that calls to these numbers may be monitored or     
recorded for security and training purposes. The helpline cannot provide    
    advice on the merits of the matters to be considered at the meeting nor can 
    it give any financial, legal or taxation advice or accept proxy voting      
    instructions.                                                               
5.   Completion and return of a form of proxy will not prevent a shareholder    
    from subsequently attending and voting in person at the extraordinary       
    general meeting.                                                            
6.   In the case of joint holders of shares, the vote of the senior who tenders 
a vote, whether in person or by proxy, will be accepted to the exclusion of 
    the other joint holder(s) and for this purpose seniority will be determined 
    by the order in which the names stand in the register of members of the     
    Company in respect of the relevant joint holding.                           
7.   Pursuant to Regulation 41 of the Uncertificated Securities Regulations     
    2001, the Company specifies that only those shareholders registered in the  
    Register of Members of the Company as at 6.00 p.m. on 29 March 2010, or in  
    the event that the meeting is adjourned, in the Register of Members as at   
6.00 p.m. on the day that is two working days prior to any adjourned        
    meeting, shall be entitled to attend or vote at the meeting in respect of   
    the number of shares registered in their name at the relevant time. Changes 
    to entries on the Register of Members after 6.00 p.m. on 29 March 2010 or,  
in the event that the meeting is adjourned, 6.00 p.m. on the day that is    
    two working days prior to the day of any adjourned meeting, shall be        
    disregarded in determining the rights of any person to attend or vote at    
    the meeting.                                                                
8.   Dematerialised shareholders in South Africa who are not own name           
    dematerialised shareholders and who wish to attend the annual general       
    meeting should instruct their CSDP or broker to issue them with the         
    necessary authority to attend the annual general meeting in person, in the  
manner stipulated in the custody agreement governing the relationship       
    between such shareholders and their CSDP or broker. These instructions must 
    be provided to the CSDP or broker by the cut-off time and date advised by   
    the CSDP or broker for instructions of this nature.                         
Dematerialised shareholders in South Africa who are not own name            
    dematerialised shareholders and who cannot attend but who wish to vote at   
    the meeting should provide their CSDP or broker with their voting           
    instructions, in the manner stipulated in the custody agreement governing   
the relationship between such shareholders and their CSDP or broker. These  
    instructions must be provided to the CSDP or broker by the cut-off time and 
    date advised by the CSDP or broker for instructions of this nature.         
9.   Resolutions 6, 7 and 8- Removal of authorised share capital / Authority to 
allot shares / Grant of options                                             
    Since the recent implementation of certain provisions of the Companies Act  
    on 1 October 2009, there is no longer a requirement for a company to have   
    an authorised share capital.  With effect from 1 October 2009 pursuant to   
transitional provisions relating to the Act, the Company`s authorised share 
    capital immediately prior to that date automatically became a provision of  
    the Company`s articles setting the maximum amount of shares that may be     
    allotted by the Company.                                                    
As a company is no longer required to have an authorised share capital, the 
    Directors believe it is preferable to seek the approval of shareholders to  
    the removal of the limit in the Company`s articles setting the maximum      
    amount of shares that may be allotted rather than the approval of           
shareholders to increase the limit.                                         
    Resolution 6 is accordingly proposed as a special resolution to delete the  
    provision which, by virtue of paragraph 42(2) of Schedule 2 to the          
    Companies Act 2006 (Commencement No 8, Transitional Provisions and Savings) 
Order 2008, is treated as a provision of the articles of association of the 
    Company setting the maximum amount of shares that may be allotted by the    
    Company at the level of its former authorised share capital and to delete a 
    reference in the articles of association to the authorised share capital of 
the Company.                                                                
    Resolution 7 is proposed as an ordinary resolution to enable the Company to 
    increase its existing 51% holding in the Lonrho agri-processing businesses  
    Rollex (Proprietary) Limited and Fresh Direct Limited by up to a further    
49%. In December 2009 the Company announced that it had successfully raised 
    total funds of GBP25.1 million via two separate placements and that these   
    funds would be used to increase the Company`s interests in the Group`s      
    agricultural division and buildings division and to provide additional      
working capital. With respect to the agricultural division, the respective  
    sellers have indicated that they would prefer the consideration for this    
    transaction to be in the form of Lonrho Plc shares which the Lonrho Board   
    believes is in the best interests of the Company. The exact consideration   
payable will be in accordance with provisions set out in the original       
    transaction documentation in conjunction with an agreed formula in relation 
    to the exchange rate and share price on the day of the AGM.                 
    Completing this transaction for consideration in shares as opposed to cash  
has significant benefits for the Group by:                                  
    1.   Creating long term  alignment between the Group and Paul de Robillard, 
         the CEO of Lonrho Agriculture division, through his family trust       
         becoming a substantial shareholder in Lonrho Plc.  He will remain as   
Chief Executive of Lonrho Agriculture and will play a key role in the  
         development of the Group`s growing Agribusiness strategy.              
    2.   Preservation of cash resources to enable the Group to further pursue   
         the expansion of its agricultural activities across Africa.            
3.   Continuity of quality management with invaluable experience and a      
         strong history of performance for the Lonrho Agriculture division.     
    The Directors believe that it is important that directors and employees of  
    the Group are appropriately aligned with shareholders and motivated and     
incentivised to perform. The Company currently has 3.5% of its equity       
    allocated to a company share option scheme. This is substantially less than 
    the average for an AIM listed company and accordingly, subject to the       
    approval of shareholders, it is proposed that 53,000,000 options be granted 
to Executive Directors, employees and consultants at an exercise price of   
    ten percent above the mid market price on the day of the AGM per ordinary   
    share of 1p each in the Company to align the company share option scheme up 
    to a parity level with other similar companies. Accordingly, resolution 8   
will be proposed as an ordinary resolution to approve the grant of these    
    options.                                                                    
10.  As at 26 February 2010 the Company`s issued share capital consisted of     
    1,050,278,712 ordinary shares of 1 pence each. Each ordinary share carries  
the right to vote at a general meeting of the Company and, therefore, the   
    total number of voting rights in the Company as at 26 February 2010 was     
    1,050,278,712.                                                              
11   Recommendation                                                             
The Directors believe that the passing of all resolutions will be in the    
    best interests of the Company and its shareholders as a whole and are       
    unanimous in recommending that shareholders vote in favour of them.         
8 March 2010                                                                    
South African Sponsor                                                           
Java Capital (Proprietary) Limited                                              
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