Sibanye Gold’s share price fell as much as 35% to a low of R18.39 on Wednesday after the nil-paid letters associated with its rights issue started trading. Sibanye shareholders received nine nil-paid letters for every seven Sibanye shares held. At about R19.60 per Sibanye share and R8.32 per-nil paid letters, Sibanye shareholders were effectively 7% richer on Wednesday. At Tuesday’s closing price of R28.26, seven Sibanye shares were worth R197.82. On Wednesday seven Sibanye shares plus nine nil-paid letters were worth R212.08. The nil-paid letters traded in a range between R10 and low of R7.80. At 11:20am, the nil-paid letters were trading at R8.32, by which time 2.51-million had traded for a total value of R20.45m. Each Sibanye nil-paid letter gives the holder the right to buy a new Sibanye share at R11.28 each. The mining group unbundled from Gold Fields is issuing more than 1-billion new shares to raise nearly R13.5bn to partly fund its $2.2bn acquisition of US platinum miner Sti...
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