FRIDAY, 4.00PM
FORMER Lonrho chief Tiny Rowland, who is still the group’s single largest individual shareholder, has attacked Johannesburg Consolidated Investments’ attempt at a merger with Lonrho in full-page advertisements place in the British and South African press.
In the ads, Rowland attacks JCI chairman Mzi Khumalo and his relationship with Anglo American, and suggests that Anglo is the real power behind JCI and Khumalo’s black empowerment group.
Rowland claims that Lonrho’s board is only considering the merger as a result of pressure from Anglo American, the controlling shareholder of the group. Anglo has made no secret of its interest in Lonrho’s Ashanti gold mine in Ghana, of which Rowland is a non-executive director. Last year Anglo was ordered by the European Union to reduce its holding in Lonrho and it is believed the group hopes to acquire Ashanti in return for a portion of its Lonrho stake. It is thought Anglo hoped to accomplish this via the JCI merger.
In the advertisement, Rowland questions why JCI would want to merge with Lonrho and what it has to offer Lonrho. “Looking at JCI’s assets, with its troubled major gold mines, Western Areas, Randfontein and the more interesting Joel, the conflicts with the labour force (including the possible redundancy of 4 100 mineworkers), and JCI’s financial position, shareholders will ask themselves why Lonrho would want to merge its low-cost, high potential mining assets with those of JCI, if it weren’t for Anglo’s influence. A look at JCI’s board, where the majority come from Anglo’s camp … makes it clear who is in charge of the deal.”
He concludes the advertisement saying: “Safeguarding Lonrho’s shareholders and what’s left of Lonrho’s assets is the right end of the deal. As the single largest individual shareholder, I want Lonrho to do a good deal. I strongly oppose a JCI deal as so far reported in the press as no business — just show business. JCI needs Lonrho, but Lonrho certainly does not need JCI.”