Lonmin prices discounted cash callComment on this story
Platinum miner Lonmin has priced a $817 million rights issue at a discount of 45 percent, pushing ahead with a cash call to slash its debt and fund a recovery, after it was battered by six weeks of strikes.
Lonmin, the world's third-largest platinum miner, said it would issue 9 new shares for every 5 existing, a total of up to 365 million shares at 140 pence or 19.5 South African rand.
The UK price represents a 44.4 percent discount to the theoretica ex-rights price (TERP) of an existing share. In South African rand, the discount is 45 percent.
Lonmin booked $755 million of special costs, including $159 million for the costs of the strike. That dragged it to a full-year loss before tax of $698 million. - Reuters