Sibanye Gold has made “significant progress” in advancing the acquisition of Anglo American Platinum’s (Amplats’) Rustenburg platinum Operations and Aquarius Platinum which were announced on 9 September 2015 and 6 October 2015 respectively.
Aquarius and Sibanye Gold entered into a transaction in October under which a wholly owned subsidiary of Sibanye Gold will, subject to the satisfaction of certain conditions, acquire all of the shares in Aquarius for a cash consideration of US$0.195 for each Aquarius share.
The offer document to Aquarius shareholders is expected to be posted by mid-December 2015 and will be voted on at the special general meeting, expected to take place in January 2016.
Meanwhile, the acquisition of the Rustenburg Operations is currently being finalised and is expected to be posted to Sibanye Gold shareholders by mid- December 2015, with the shareholders meeting expected to take place in mid-January 2016.
Despite platinum group metal (PGM) prices drifting lower since the transactions were announced, Sibanye says that it remains committed to expeditiously concluding both transactions, which are each compelling in their own right.
“As highlighted when these transactions were announced, whilst near term economic headwinds and supply side factors have resulted in downward pressure on metal prices, the long term outlook for PGM demand remains constructive, as evidenced by continued growth in auto demand globally.
“Combining the contiguous Rustenburg Operations with Aquarius’ Kroondal mine, will enable us to deliver significant operational synergies, underpinning a sustainable business in a lower-for-longer price environment and providing leverage to a recovery in prices, thereby enhancing value for shareholders,” Sibanye Gold CEO Neal Froneman says.