Johannesburg - South Africa's Sibanye Gold has offered to acquire Aquarius Platinum for $294 million, its latest thrust into the platinum sector which has been hammered by falling prices and rising costs.
Sibanye said in a statement that its offer valued Aquarius at $294 million, or R2.66 per share.
Aquarius's shares in Johannesburg soared over 40 percent to R2.40 on the news.
“The board of directors of Aquarius has unanimously recommended that Aquarius shareholders vote in favour of the offer,” Sibanye said.
Sibanye in September acquired the labour-intensive and costly Rustenburg operations of Anglo American Platinum, which were at the epicentre of an often violent five-month strike last year.
The Aquarius operations, by contrast, are mechanised and low cost, which Sibanye said would help to consolidate its position in South Africa's platinum sector.
REUTERS