29 May Lonmin shareholders green light Sibanye’s $286 million takeover bid
Sibanye-Stillwater is set to become the world’s largest platinum producer after its US$286 million offer to buy Lonmin was approved by the majority of the struggling PGM miner’s shareholders.
Investors owning nearly 99% of Lonmin’s stock voted in favour of Sibanye’s all-share offer, which had been revised down by around $76 million in April, after the initial bid was made in December 2017.
The vote followed the approval of the bid by 87% of Sibanye’s shareholders, and paves the way for the South African precious metals miner to become the world’s second largest palladium producer, as well as the biggest platinum producer.
“We are pleased to have received the overwhelming support of both sets of shareholders for the Lonmin transaction,” said Sibanye’s CEO Neal Froneman in a separate statement.
The deal passed a significant hurdle earlier this month, when South Africa’s Competition Appeal Court overruled an attempt by Lonmin’s main mining union, the Association of Mineworkers and Construction Union’s (AMCU), to block the takeover.
London-listed Lonmin has struggled to recover from the commodity price downturn of 2016 and has also been faced with rising costs resulting from a large labour force and deep underground mines. However, the Sibanye takeover is seen as a rescue deal for the South Africa-focused firm.