Sibanye-Stillwater acquires Lonmin for R5 billion
Sibanye-Stillwater has agreed to buy troubled mining house Lonmin in an all-share deal
According to Neal Froneman (pictured), Sibanye-Stillwater CEO, the acquisition will deliver longer-term benefits for all stakeholders. Under the offer, Lonmin shareholders will receive 0.967 new Sibanye-Stillwater shares for each Lonmin share. Once the deal is complete, Lonmin shareholders will hold around 11.3 percent of the enlarged group.
Froneman said in a statement:
"The flexibility inherent in the larger regional PGM footprint will create a more robust business, better able to withstand volatile PGM prices and exchange rates.”
According to Reuters, UBS and HSBC advised Sibanye-Stillwater on the deal.