Sibanye-Stillwater has finally launched its long-anticipated takeover bid for platinum miner Lonmin, securing critical smelting and refining operations in a deal worth R5bn, and cementing its role as one of the world’s leading producers of platinum group metals. With an appetite for transactions undimmed by the hefty debt incurred in the $2.2bn cash takeover of America-based Stillwater Mining, a palladium and platinum mining and recycling company, Sibanye has finally swooped on its embattled South African neighbour in an all-share transaction. In a deal that offers Lonmin’s investors a chunky premium, the all-share deal will see the platinum miner’s shareholders owning 11.3% of the enlarged Sibanye-Stillwater and the gold and platinum group miner’s shareholders owning the balance. Based on Wednesday’s closing share prices, the transaction represented a 35% premium, while on a 30-day volume weighted average price the transaction valued Lonmin at about £285m or R5bn, a 41% premium. Lo...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.