DEBT CONCERNS
Sibanye lifts equity in Stillwater deal to $1.3bn
Sibanye Gold may delay growth projects because of the strength of the rand, while it looks to keep as much debt as possible off its balance sheet by raising its rights issue to $1.3bn towards buying Stillwater Mining. Sibanye caught the market by surprise at the end of 2016, announcing a $2.2bn cash takeover bid of Montana-based Stillwater, the largest source of platinum group metals outside SA and Russia. Sibanye CEO Neal Froneman said in December the company would raise between $750m and $1bn in a rights issue, but on Friday said it could raise as much as $1.3bn from shareholders, depressing its share by as much as 7% on Friday. The final decision on the size of the rights issue would be based on market conditions, commodity prices and exchange rates at the time and what shareholders wanted, Sibanye said. "Sibanye believes that increasing the equity component would be prudent in the current strong rand environment, allowing it to maintain a strong balance sheet."
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