Sibanya acquires Aquarius Platinum; companies' share prices soar


Sibanye Gold has acquired the entire share capital of Aquarius Platinum for a sum of R4 billion. The purchase makes Sibanye one of the five largest global platinum group metals miners.

Sibanye CEO, Neal Froneman, said:

"We are extremely pleased to have received the full support of the Aquarius board for this Transaction, following extensive due diligence and negotiations. The acquisition of Aquarius is consistent with Sibanye's strategy to secure value accretive, cash flow enhancing opportunities, which support its dividend strategy. The Transaction is highly complementary with the Rustenburg acquisition, which we recently announced. Significant additional value can be realised from optimising inherent regional and operational synergies between Aquarius' Kroondal mine and the Rustenburg Operations, which are adjacent to it. At higher PGM prices, these assets will substantially increase earnings and value for Sibanye shareholders".

  • In September, Sibanye acquired Anglo American Platinum's Rustenburg mines for an amount of R4.5 billion. Read more here.

Following news of the Aquarius acquisition, the share prices of both companies rose considerably - Aquarius gaining more than 40%; Sibanye more than 10%. Sibanye offered R2.66 ($0.195) per share in cash for all of Aquarius Platinum's shares.

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