Sibanye Gold (JSX: SGL), the largest producer of gold from mines in South Africa and among the top ten gold producers globally, will pay US$2.2 billion to acquire Stillwater Mining (NYSE: SWC), the only U.S. miner of platinum group metals and the largest primary producer of PGMs outside of South Africa and the Russian Federation.
The acquisition marks Sibanye’s first investment outside of South Africa and its third investment in PGMs over the last 15 months.
The all-cash transaction valued at US$18 per share represents a 23% premium to Stillwater’s prior day closing share price and a 61% premium to Stillwater’s volume weighted average share price over the last 52 weeks.
Sibanye says the acquisition enhances cash flow generation through value accretive growth and represents a “transformational” opportunity to create a premier, global precious metals miner with a balanced portfolio of gold and PGM assets at a favourable point in the commodity cycle.
Read the entire story at The Northern Miner.