Sibanye Gold Ltd (ADR)(NYSE:SBGL) Reports Progress On Its Proposed Acquisitions


Sibanye Gold Ltd (ADR) (NYSE:SBGL) provided an important update to its shareholders, informing them about the two acquisition transaction relating to Anglo American Platinum Limited’s Rustenburg Platinum Operations and Aquarius Platinum Limited. The company had first announced its acquisition plans for Rustenburg and Aquarius on 9 September 2015 and 6 October 2015 respectively.

Transaction update

Sibanye Gold Ltd (ADR) (NYSE:SBGL) noted that the shareholders meeting for the approval of Rustenburg Operations is scheduled to take place in mid-January. Moreover, the transaction is subject to the conditions imposed by the South African Competition Commission. The approval by the commission is likely to come by March’ 2016. Meanwhile, the company has highlighted that it has obtained all the necessary consents along with completion of the Broad Based Black Economic Empowerment Transaction (“BBBEE”) from the South African Department of Mineral Resources.

Moving over to Aquarius transaction, the company said that the shareholders have approved the transaction. The offer document will be submitted to the Aquarius shareholders within this month. It also added that the special general meeting of Aquarius shareholders is likely to be held in January 2016. Similar to Rustenburg, the company has filed for the approval from the South African Competition Commission and anticipated to receive the approval by March 2016. As all the necessary consents have been sought, Sibanye expects the transaction to close by April 2016.

Committed to complete the deal

Sibanye maintained that it would pursue the completion of the transactions despite lower metal prices and economic headwinds. Another positive development reported by the company was that its CEO Neal Froneman has been chosen as the “CEO of the year” at the 13th annual conference of Mines and Money in London. Earlier in October, the company reached a pay deal with three of the four unions, cited a Bloomberg report.

The stock price of Sibanye Gold Ltd (ADR) (NYSE:SBGL) inched up by 1.85% to $5.52 during the last day trading.

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