Lonmin Plc investors backed the platinum producer’s takeover by Sibanye Gold Ltd., bringing to an end a company that was once part of a business empire synonymous with British capitalism in Africa.
Sibanye’s all-share takeover was backed by 99% of votes cast at a meeting in London, passing the required threshold of 75%. The vote is a triumph for Sibanye Chief Executive Officer Neal Froneman, a prolific deal-maker who faced investor concerns that his offer undervalues Lonmin’s assets. Sibanye shareholders approved the deal earlier in the day.
Froneman, who had already seen off a challenge to the deal from Lonmin’s biggest labor union, will gain access to his rival’s processing facilities and some of the lowest-cost shafts in the industry.
The combined entity will challenge Anglo American Plc’s platinum business as the world’s biggest primary producer of the metal.Sibanye shares rose 9.7% by 4:57 p.m. in Johannesburg on Tuesday and Lonmmin was 9.6% higher in London.
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