Sibanye Gold unveiled the terms of its underwritten rights offer towards funding the $2.2bn cash purchase of US-based Stillwater Mining, a palladium and platinum miner, showing a sizeable 60% discount to Wednesday’s share price close. It is offering 1,195,787,294 shares to its shareholders for R11.28 each, or $0.86, allowing them to buy nine shares for every seven shares they own in a process that starts on the morning of May 29 and closes at midday on June 9. The share price fell more than 6% in intraday trade on Thursday to R26.75. The rights offer will raise R13.49bn, or $1.026bn using Sibanye’s exchange rate of R13.15 to the dollar.
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