COMPANY COMMENT
Sibanye and Lonmin lift off ahead of tribunal hearing
Shares of both miners soar amid takeover talks
As the date for the Competition Tribunal two-day hearing into the Sibanye-Stillwater all-share takeover of world number three platinum miner Lonmin approaches, both shares have rocketed higher. Buoyed by an improved bullion price, Sibanye has moved well off its lowest point this year of R7.08 and is closing in on the highest level of R16. By mid-afternoon on Monday the share had gained 15% to touch R12.51. Taking the cue from Sibanye, Lonmin shares increased 12.9% to R11.57, bringing it closer to its year high of R15.01. The two-day tribunal hearing will start with the foundation of a recommendation from the Competition Commission that the takeover of Lonmin’s mines, concentrators and refineries proceed in a highly conditional transaction. Sibanye has the chance to argue against some of the conditions, but they are hardly deal breakers and, in the light of the high unemployment rate in SA, sensible for the company with gold and platinum mines in the country to abide with to reduce t...
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