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Sibanye bid for Lonmin approved by all shareholders

Christian Fernsby ▼ | May 28, 2019
Sibanye-Stillwater has become one of the world’s leading sources of platinum group metals (PGM) by successfully taking over number three platinum producer Lonmin, sending their shares soaring.
Acquisition   Shareholders in both companies overwhelmingly supported the transaction
Shares in Sibanye shot up by more than 7% on Tuesday, while Lonmin rocketed up nearly 11%.

Shareholders in both companies overwhelmingly supported the R4.2bn all-share transaction that will create a powerful player in the global PGM market, leaving it competing with Anglo American Platinum and Russia’s Norilsk Nickel as the largest producers of platinum and palladium, respectively.

Despite calls from some analysts for Lonmin’s largest shareholder, SA’s Public Investment Corporation (PIC), to reject the offer because it undervalued the platinum company, there was a 98.9% vote in favour of the transaction at the company’s London shareholder meeting on Tuesday afternoon.