Lonmin takes out Southern Platinum (July 18, 2005)

London-based platinum producer Lonmin (LMI-L) intends to acquire all the shares of Southern Platinum (SPC-T) that were not tendered to its recently expired $2.66-per-share takeover bid.

The bid expired June 28 with nearly 85.1 million shares tendered; those shares represent 97.2% of Southern Platinum’s issued and outstanding share count, or 91% on a fully diluted basis. The offer needed a 90% acceptance rate to allow for compulsory acquisition of the remaining shares.

Southern Platinum’s key asset is its 91.5%-owned Messina Platinum subsidiary, which operates the Messina platinum group metal mine in South Africa. Lonmin also inherits an offtake agreement for Messina concentrates from Impala Platinum Holdings (IMPAF-P) for US$15 million and will deliver concentrates to Impala’s refinery until May 2006.

The world’s third-largest platinum miner also plans to look at the economics of an expansion at Messina, which would have a budget of US$75 million. The current capacity is 45,000 oz. platinum per year plus 41,000 oz. of other platinum group elements and gold. The expansion would bring annual platinum production to 75,000 oz.

The South African Competition Tribunal approved Lonmin’s bid in early June, with the proviso that no more than 284 semi-skilled employees and 116 management-, artisan-, supervisor- and administrator-level positions be eliminated following the acquisition.

Lonmin expects the compulsory acquisition to wrap up by the end of July; accordingly, Southern Platinum has cancelled its shareholders meeting scheduled for Aug. 9.

Print

Be the first to comment on "Lonmin takes out Southern Platinum (July 18, 2005)"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close