Sibanye-Stillwater and Lonmin plc have reached agreement on an increased recommended all-share offer to be made by Sibanye for the entire issued and to be issued share capital of Lonmin.
In December 2017, Sibanye offered R5.17 billion to acquire the platinum group metals (PGMs) miner Lonmin in a deal that would create the world’s second-largest platinum producer.
Lonmin shareholders will be entitled to receive one new Sibanye share for each Lonmin share they hold, reflecting a 3.4 percent increase relative to the exchange ratio of 0.967 new Sibanye-Stillwater shares for each Lonmin share held, as announced in 2017.
Sibanye-Stillwater Board and that of Lonmin considered that the increased offer reflected the recent recovery in the PGM pricing environment, balanced against the fact that Lonmin continued to be financially constrained and unable to fund the significant investment required to sustain its business and associated employment.
The increased offer was proposed to be effected by means of a UK scheme of arrangement.