Lonmin CEO: Sibanye’s revised purchase offer a reflection of new market conditions

Sibanye Stillwater has increased its offer to purchase Lonmin by 3.4 per cent to 77.4 pence per Lonmin share. The decision by both boards to agree on this increase comes as a reflection of the recent recovery in PGM pricing balanced against the financial constraints faced by Lonmin. Lonmin CEO, Ben Magara, joined CNBC Africa to discuss the revised offer and the process going forward. Magara emphasized the importance of considering market conditions and the performance of Lonmin when evaluating the revised offer. He highlighted the improvements in PGM prices and the overall market conditions since the initial announcement of the transaction in December 2017. Magara expressed the board's belief that the increase was a fair and reasonable outcome given the changing landscape. The next steps in the process involve shareholders voting on the transaction at a general meeting scheduled for the 28th of May. Following shareholder approval, the deal will proceed to a court function in the court of England and Wales. Magara addressed potential concerns regarding regulatory approval, noting that major regulatory bodies have already approved the transaction, with the competition of pre-course being the only remaining step. He emphasized the benefits of the merger for both Lonmin and Sibanye Stillwater shareholders, citing synergies and growth opportunities. Magara expressed confidence in shareholder support and reiterated the value of the deal for all stakeholders involved.