Reuters: Hot Stocks: UPDATE 1-UK's Lonrho gets buyout offer at nearly double its value

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UPDATE 1-UK's Lonrho gets buyout offer at nearly double its value May 15th 2013, 07:34 Wed May 15, 2013 3:34am EDT * FS Africa offers to pay 10.25 pence per share * Offer at premium of 97.1 pct to stock's Tuesday close (Adds details, analyst comment and share movement) May 15 (Reuters) - British industrial group Lonrho Plc said it received a 174.5 million pound ($266.2 million) buyout offer at a premium of 97.1 percent from a company controlled by Swiss billionaire Thomas Schmidheiny and investor Rainer-Marc Frey. Africa-focussed conglomerate Lonrho said the newly created investment vehicle, FS Africa, offered to pay 10.25 pence per share. Lonrho shares, which closed at 5.2 pence on the London Stock Exchange on Tuesday, rose 87.5 percent to 9.75 pence in early trading on Wednesday. "It's a reasonable offer," Daniel Stewart analyst Michael Campbell said. The offer is around the company's annual revenue, he added. FS Africa, which controls 19.9 percent in Lonrho together with certain parties, is a consortium comprising Rainer-Marc Frey and BIH SA, owned by Schmidheiny who was termed the fourth richest man in Switzerland by Forbes magazine in 2012. Lonrho, whose businesses range from agribusiness to hotels, is a majority holder of carrier FastJet Plc and owner of seafood production company Oceanfresh Seafoods. FS Africa has received commitments from certain Lonrho directors and shareholders who represent roughly 18 percent of issued share capital to vote for the deal. Lonrho's shares have fallen more than a third since this year. ($1 = 0.6554 British pounds) (Reporting by Richa Naidu and Karen Rebelo in Bangalore; Editing by Don Sebastian) Link this Share this Digg this Email Reprints

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