Sibanye allays fears of corporate action, says it is simplifying the group structure
Companies / 10 December 2019, 12:00pm / Dineo Faku
JOHANNESBURG – Sibanye-Stillwater on Monday shrugged off speculation that it was re-jigging its structure in anticipation of corporate action.
The diversified mining company published its pre-listing statement ahead on the scheme that would result in Sibanye-Stillwater becoming a holding company for the group.
Group spokesperson James Wellsted said the company was simplifying the group structure in a bid to make it more efficient.
“There is a lot of market speculation. People are speculating that we are getting ready for corporate action. However, we believe that improving the group structure is a logical step for us. It has been coming for years, and we had to work to ensure there were no tax implications,” said Wellsted.
Sibanye-Stillwater said it expected to have an issued share capital of 2.6 billion listed shares on the JSE following the implementation of the scheme.
It said the scheme would come into effect next February.
Earlier, an anonymous analyst said that the decision to simplify the structure was likely to make it easy for Sibanye-Stillwater to house its gold assets under DRDGold. Sibanye-Stillwater acquired a 38.05 percent stake in DRDGold last year.
“I still think that they will list their gold assets under the DRDGold banner. Gold has been a drag on Sibanye, the sooner they separate the gold and platinum assets the better,” said the analyst.
In October, Sibanye-Stillwater proposed the acquisition of the 100 percent issued capital of Sibanye-Gold Limited (SGL) through a scheme of arrangement that was subject to conditions including shareholder, JSE and the South African Reserve Bank approval.
Sibanye Gold was established in 2012 when JSE listed Gold Fields, spun off its ageing Driefontein, Kloof and Beatrix mines amid concerns about uncertainty in South Africa’s mining jurisdiction.
It was listed as a separate company in 2013 on the JSE and New York .
In 2017 it created Sibanye-Stillwater after evolving from a gold to a global precious metal mining group. It consolidated the mining industry following a massive acquisition spree of companies including Aquarius Platinum, and Anglo American Platinum’s Rustenburg operations.
It also acquired Lonmin, the world's third-largest platinum producer, its associated mining, retreatment, smelter, and metal refinery assets. It also acquired Stillwater, the platinum and palladium producer in North America.
The group describes itself as the world's largest primary producer of platinum, the second-largest producer of palladium and a leading global producer of gold from diversified operations spanning southern Africa and the Americas.
It said that upon the implementation of the scheme, the Sibanye-Stillwater Board was expected to comprise the same members as the current SGL board.
The Sibanye-Stillwater management is expected to comprise the same members as the current SGL management, it said.
Sibanye-Stillwater shares rose 0.78 percent on the JSE yesterday to close at R30.85.
SIBANYE-Stillwater group spokesperson James Wellsted says improving the group structure is a logical step. | Itumeleng English African News Agency (ANA)