Sibanye raises share offer for Lonmin
Sibanye boss Neal Froneman is determined to get the deal done, as the company needs access to Lonmin’s metal-processing facilities in SA
Sibanye has agreed to raise its all-share offer for platinum miner Lonmin, citing an increase in metal prices since the deal was announced in December 2017. The increase should help bolster support from Lonmin investors, who still need to vote on the takeover. It also signals Sibanye boss Neal Froneman’s determination to get the deal done, as the company needs access to Lonmin’s metal-processing facilities in SA. Prices for both of Lonmin’s key metals have increased sharply in recent months. Palladium rose to repeated records early in 2019 amid concern about a prolonged deficit, and platinum has rallied 11% this year. Still, while Sibanye has boosted the share ratio it is offering to Lonmin investors, the value of the deal remains lower than when it was announced, after the company’s share price fell and it sold new equity earlier in April. “It’s a small improvement, it should keep Lonmin shareholders happy,” said Rene Hochreiter, an analyst at Noah Capital Markets. “It’s a little b...
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