Froneman sells R11.5m in Sibanye shares to cover tax liability
Sibanye Gold CEO Neal Froneman has sold about R11.5m worth of Sibanye Gold shares to cover the tax liability on his vesting bonus and performance shares, the company said on Monday.
At the same time, he acquired R15.6m of bonus and performance shares.
Froneman sold the shares at an average price of R22.50 and acquired the shares at R24.53 each.
Froneman, who became CEO of Sibanye Gold on January 1 2013, was granted performance shares on May 1 2013. He was also awarded bonus shares in March of 2015 and 2016. Performance shares are awarded depending on the achievement of certain targets, while bonus shares are part of the annual bonus, of which two-thirds is paid in shares.
Since Sibanye’s listing in February 2013 at about R15, the shares have touched a peak of R72.48, but they have fallen steadily since the middle of this year to the current level of R22.98, partly on a weaker gold price.
The group’s recent announcement of an offer to buy Canadian platinum miner Stillwater was not well received by the market. Several analysts described the 20% premium that Sibanye was offering Stillwater shareholders as "a full price".