25th Apr 2019 16:30
LONDON (Alliance News) - Sibanye Gold Ltd on Thursday said it has reached an agreement with Lonmin PLC on the terms of an increased recommended all-share offer.
The miner said Lonmin shareholders will now receive one Sibanye share for each Lonmin share, up 3.4% from the 0.967 Sibanye share per Lonmin share deal agreed in December 2017. The new offer now values Lonmin at GBP226 million, or ZAR4.21 billion.
Following completion of the takeover, which is expected on June 7, Lonmin shareholders will hold 11% of enlarged Sibanye.
Sibanye said the increased offer for Lonmin reflects the recent recovery in the platinum group metals pricing environment, balanced against the fact that Lonmin continues to be financially constrained and unable to fund the significant investment required to sustain its business and associated employment.
Sibanye shares closed 0.1% higher in Johannesburg on Thursday at ZAR14.29 each. Lonmin shares ended the day 2.6% higher in Johannesburg at ZAR13.89 each, while in London the stock was up 2.5% in afternoon trade at 74.84 pence a share.