Sibanye Gold is looking to raise some R13.3 billion in equity ($1 billion), to partly fund a takeover of US-based Stillwater Mining Company, the country’s sole platinum and palladium miner. It will raise a further $1 billion in debt, most likely in the bond market, it has said.
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Pictured: Charl Keyter, Sibanye Gold CFO
The company said in a statement:
"Sibanye management and board has determined that a $1 billion equity capital raise, through the rights offer, is optimal given current market conditions."
According to Reuters, the Committee on Foreign Investment in the United States, which examines deals for potential national security concerns, has cleared Sibanye's $2.2 billion takeover of Sillwater.
The two companies have scheduled shareholders' meetings on 25 April to vote on the proposed merger.
