Thursday , July 29 2021

Lonmin shares crash in fear that Amcu will launch a crucial deal with Sibani



The size of the planned cuts "guarantees the ban on the transaction," Abu said in statements to the court. The union also said that the prospects for platinum group metals have improved and that a weaker line means that Lonmin could work profitable.

If the merger does not take place, Lonmin will need to remain in operation from $ 450 to $ 500 million, CFO Barrie van der Merwe said at the court hearing on Monday. The company was unable to return to the market to raise more funds, he said.

The Competition Commission recommended the acquisition, clearing of a major barrier to the agreement, provided that Sibanye will try to save about 3,700 jobs if prices improve and the company can maintain production costs on some axes.

The court is expected to give its final decision on the issue once the public affairs have been completed.

The acquisition of Lonmin from Sibanye is the latest in a series of negotiations by CEO Neal Froneman, who has transformed the miner into a platinum group expansion.

For Lonmin, the deal comes after the company struggled with years of damage and was forced to seek relief from lenders from the debt settlement.

Shareholders of Sibanye can vote on the deal in January if the court gives the final approval of the transaction this year, Froneman said on October 26th.

Mr. Amcu said the $ 200 million Lonmin metal deal with Pangea Investments Management improved the liquidity of the company and Lonmin "is not in danger of coming out of the market in the near future."

Bloomberg


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