Lonrho PLC LONR Re Fastjet Plc $2.4 million Placing

  Lonrho PLC (LONR) - Re Fastjet Plc $2.4 million Placing

RNS Number : 8314Q
Lonrho PLC
12 November 2012




12 November 2012

                                      

                                  Lonrho Plc

                                  ("Lonrho")



Lonrho is pleased to announce that fastjet Plc ("fastjet" or the "Company"),
the AIM listed African airline in which Lonrho owns 67.4%, has announced it
has entered into binding subscription agreements to raise $2.4 million (£1.50
million) for the issue of 42,857,144 new ordinary shares in the Company (the
"Subscription Shares") at a price of £0.035 per share (the "Subscription
Agreements"). Upon completion Lonrho's shareholding in fastjet will reduce to
65.8%.



                                 Fastjet Plc

                             $2.4 million Placing

fastjet Plc (AIM:FJET) is pleased to announce that it has entered into binding
subscription agreements to raise $2.4 million (£1.50 million) for the issue of
42,857,144 new ordinary shares in the Company (the "Subscription Shares") at a
price of £0.035 per share (the "Subscription Agreements"). Upon completion The
Subscription Shares will represent approximately 2.43% of the enlarged  issued 
share capital of the Company.

David Lenigas, FastJet's Executive Chairman, commented:

"Following the announcement  on 5^th  November 2012 of  the completed  FastJet 
branding and the  launch of  FastJet operations  in Tanzania  with three  A319 
aircraft, the  Company is  now progressing  with establishing  the second  hub 
location for FastJet in the continuing plan to build the FastJet network  into 
the Low Cost Carrier for all of Africa."

"These additional funds will be deployed  in assessing an earlier than  expect 
opportunity open to FastJet to interact with the Southern African market place
and progressing with the opening of  further operational hubs for the  FastJet 
network across Africa."



ENDS

Enquiries:

Lonrho Plc +44 (0) 20 7016 5105

Geoffrey White

David Armstrong

FTI Consulting +44 (0) 20 7831 3113

Edward Westropp

Georgina Bonham

Jefferies Hoare Govett +44 (0) 20 7029 8000

Sara Hale

Harry Nicholas

Simon Brown

NOTES TO EDITORS

About fastjet Plc

fastjet Plc is the holding company for African airline Fly540, which  operates 
from four bases in Kenya, Tanzania, Ghana and Angola. Fly540 currently has 10
aircraft serving  around  25  domestic  and  regional  destinations,  carrying 
approximately 750,000 passengers per  year with a  strong emphasis on  safety, 
security and reliability.

Following  a   consultancy  assignment   by   easyJet  founder   Sir   Stelios 
Haji-Ioannou's easyGroup focused on determining the feasibility of launching a
European-style low-cost carrier in Africa, we are now preparing for the launch
of fastjet, Africa's  first low-cost  carrier, flying  a modern  fleet of  jet 
aircraft based on the  Fly540 platform of licences  and routes. First  flights 
under the fastjet brand are expected to take place late November, bringing  an 
entirely new flying experience to the African market.

fastjet Plc is listed on the  London Stock Exchange. For more information  see 
www.fastjet.com

Significant African Aviation Market Potential

Africa is a growth aviation market with regional and intercontinental  traffic 
both growing  rapidly  as  a  result of  the  continent's  continued  economic 
expansion.  With  over  one  billion  people,  Africa  is  hampered  by  poor 
infrastructure, a lack of roads and railways and long distances between  urban 
populations. The African  aviation market is  significantly underserved  with 
air travel  spending as  a  percentage of  GDP a  fraction  of that  of  other 
emerging markets. With rapid  economic growth and, as  a result, the  growing 
wealth of African citizens, more and more people will be able to benefit  from 
aviation and fly for the first time. Airbus forecasts total passenger  traffic 
in Africa will grow at an average  yearly rate of 5.7% between 2010 and  2030, 
well above the 4.8 per cent world  average growth rate and expects to  deliver 
more than 1,100 new passenger aircraft, 4% of world deliveries, in the next 20
years to satisfy growing  demand. Seven of the  top 10 fastest growing  global 
economies are now in Africa with consumer spending for the continent  forecast 
to reach  US$1.6 trillion  by  2020. A  recent  McKinsey report  (June  2010) 
forecast  that  128  million  households  in  Africa  are  expected  to   have 
discretionary income to spend by 2020,  while 50% of Africans are expected  to 
live in cities by the same date  with urban jobs bringing rising incomes.  The 
McKinsey report concluded that today the rate of return on foreign  investment 
in Africa is higher than in any  other developing region and that early  entry 
into African  economies provides  opportunities to  create markets,  establish 
brands, shape.

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


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