Sibanye-Stillwater and Lonmin plc have reached agreement on an increased recommended all-share offer to be made by Sibanye for the entire issued and to be issued share capital of Lonmin.
In December 2017, Sibanye offered R5.17 billion to acquire the platinum group metals (PGMs) miner Lonmin in a deal that would create the world’s second-largest platinum producer.
Under the terms of the increased offer, Lonmin shareholders will be entitled to receive one new Sibanye share for each Lonmin share they hold, reflecting a 3.4% increase relative to the exchange ratio of 0.967 new Sibanye-Stillwater shares for each Lonmin share held, as announced in 2017.
In a statement on Friday, Sibanye said its board and that of Lonmin considered that the increased offer reflected the recent recovery in the PGM pricing environment, balanced against the fact that Lonmin continued to be financially constrained and unable to fund the significant investment required to sustain its business and associated employment.
They said the increased offer was proposed to be effected by means of a UK scheme of arrangement.
“Sibanye-Stillwater is also pleased to advise that a circular containing, inter alia, an ordinary resolution regarding the issuance and allotment of shares as the consideration payable by Sibanye-Stillwater to Lonmin for the increased offer has been posted today,” it said.
Sibanye will hold a general meeting of shareholders on May 28, immediately before its annual general meeting, to consider and, if deemed fit, pass, with or without amendment, the ordinary resolution set out in its circular.
– African News Agency