CAPITAL MARKETS

Sibanye-Stillwater proposes odd-lot offer

Aims to tidy up register

Staff reporter
 Sibanye-Stillwate aims to tidy up register

Sibanye-Stillwate aims to tidy up register

 

It's made an odd-lot offer to those holding less than 100 shares, and offered to repurchase shares from those holding between 100-400 shares.

The company said its number of ordinary shareholders had increased by about 60% to 30,000 after its June 2019 Lonmin acquisition.

It said about 50% of these shareholders owned less than 400 shares, representing about 0.05% of its shares in issue.

The offer would provide holders the ability to dispose their shares on an efficient basis and provide liquidity, the company said.

"For Sibanye-Stillwater, the offers will … reduce the complexity and cost of managing a significantly larger shareholder base," it said.

The offer price would be at a 5% premium to the VWAP on the JSE over the 10 trading days up to the day prior to the finalisation announcement, expected by December 11, less the dividend withholding tax.

Odd-lot holders who wished to retain their shares must specifically elect to do so, the company said.

Sibanye-Stillwater planned to use existing cash resources for the consideration.

It had last week reported record quarterly group adjusted EBITDA of R15.6 billion (US$922 million), thanks to high commodity prices in the September period, and had said it would make share buy-backs "when appropriate". 

The offer was subject to shareholder approval at a general meeting set for December 1, and was not available to holders of Sibanye-Stillwater American Depositary Shares.

Sibanye-Stillwater shares (JSE: SSW) closed up 4.5% to R4,905c yesterday, capitalising it about R143 billion (US$8.8 billion).

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.