20th Nov 2015 06:55
LONDON (Alliance News) - Troubled miner Lonmin PLC on Thursday said its shareholders had approved its massive rights issue as it seeks to shore up its finances following a tough year.
The company is raising USD407.0 million gross and USD369.0 million after expenses, and the group will be allowed to increase and amend its debt facilities as well following the shareholder approval for the plans. Around 87% of shareholders voted in favour of the resolutions proposed by the company.
The proceeds from the rights issue will be generated from a 46 for one rights issue of just under 27.0 million new shares in the company at 1.0 pence per new share. Those shares represent a staggering 98% of the company's enlarged issued share capital, with the price being a 94% discount to the closing price on Friday.
Lonmin has been struggling to handle the fall in platinum prices, with the company reporting a huge USD2.26 billion loss in the last financial year.
"Lonmin is now able to carry out its detailed and carefully structured business plan. I would like to thank our shareholders for their overwhelming support," said Brian Beamish, Lonmin's chairman.
By Sam Unsted; [email protected]; @SamUAtAlliance
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