Manville sells interest in Stillwater for US$110 million

A small group of private institutional investors has bought 5.4 million unregistered shares of Stillwater Mining (NASDAQ) from its parent company, Manville (NYSE).

The privately negotiated placement, which represents 27% of the common stock, was the last step in rendering the platinum and palladium producer a public company.

In 1994, Stillwater began its quest for independence when it bought out Chevron’s 50% interest and sought to raise money through an initial public offering. After the offering, Manville’s interest was diluted to 27%.

The 5.4 million shares were valued at US$20.50 per share, or a total of US$110.4 million. Manville stands to reap a US$45-million after-tax gain, or 36 cents per share in the third quarter.

Manville has retained a 5% net smelter royalty on certain claims at the Stillwater mine in southern Montana.

Stillwater has big plans for its operations in the future. It has launched a major expansion program which should double production by mid-1997. A second mine, still on the drawing board, could have the effect of doubling production yet again, by the year 2000.