Subject: Lonrho - Background and Outline of Potential Opportunity
From: "John Nevergole" <[email-masked]>
To: "Hunter Biden" <[email-masked]>, "Eric Schwerin" <[email-masked]>
Date: Thu, 28 Jun 2012 18:43:02 -0700

Hunter,

Attached is a pdf about Lonrho, I pulled out a few pages from the Annual report.  CEO statement, recap of all the divisions, and details on the agriculture business (pgs 5-8, gives you the most detail on ag business).  I outlined 2 areas where I see potential opportunities for collaboration, but I'm sure there could be others I am not thinking of

1. Develop a partnership with a company/investor that would want to act as a strategic partner for Lonrho.  Below is my summary of the opportunity.

- Lonrho has become a source of agriculture goods from the African market for major chains (i.e. Costco, Wallmart, etc).  Typically Lonrho acquires a commercial grade agro-processing business, it becomes part of its umbrella gaining access to Lonrho's distribution market, and Lonrho further invests in the expansion of that business.  However, Lonrho does not like to get involved in early stages such as investing to bring the business or facility up to commercial grade and or developing its sourcing capabilities (i.e. the fishing operation).  They want to invest at the stage where as soon as they acquire the business they can start taking its product to market.  Therefore, I believe the opportunity is for a strategic partner that would take on the role of investing to bring the business or facility up to commercial grade and working out the sourcing capabilities and then being bought out by Lonrho once it gets to that stage.  The CEO of Lonrho and I are very close and we have talked about the idea of setting something like this up.  The size of investment per project for the strategic partner may range from several hundred thousand to several million, or potentially more depending on the size of the operation.

2. Help Lonrho gain access to large clients that they can sell product to.  However, I have not really talked with Lonrho about this and given that they already supply major chains and have a reputation they may not need much help with this.

Best,

John