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JSE and NYSE-listed Sibanye has announced overwhelming support for its US$1 billion rights offer which closed on Friday 9 June 2017.

The Sibanye rights offer proceeds will be applied to partly refinancing the US$2.65 billion bridge loan facility Sibanye raised to acquire Stillwater Mining Company, which closed on 4 May 2017.

Approximately 97% of shareholders subscribed for 1.2 billion new Sibanye shares in terms of the rights
offer resulting in 36 million rights offer shares available for excess applications.

Excess applications were received for an additional 5.9 billion new shares (almost five times or 492% more than the rights offer shares available).

The 36 million rights offer shares which are available for the excess applications will be allocated in an equitable manner in accordance with the rights offer circular and the prospectus supplement.

“We are delighted that the rights offer has been such a success with the rights offer being close to fully subscribed and overwhelming subscriptions for the excess applications,” states Sibanye CEO, Neal Froneman.

“This is a substantial vote of confidence in the company and the Stillwater transaction,” he adds.

Following overwhelming shareholder approval, precious metals miner Sibanye has successfully concluded the acquisition of US-based PGMs miner Stillwater Mining Company.

The approval from both Sibanye and Stillwater shareholders was granted at their respective general meetings on 25 April 2017, which signalled that all major conditions precedent to the transaction have been met to the parties’ satisfaction.

In an announcement on 26 April, following the conclusion of the transaction – which ranks among the largest mining transactions conclude by a South African company since 2001 – Froneman thanked its shareholders for their support, as well as the management and employees of both companies, whose efforts enabled Sibanye to successfully conclude this significant transaction.

Stillwater, located in Montana in the US, owns the highest grade platinum-group metals (PGM) mines in the world.

In addition it is the lowest cost PGM producers in the world (on an all-in sustaining cost basis which includes sustaining capital expenditure requirements).

Feature image credit: Sibanye