Lonmin PLC's largest shareholder Public Investment Corp., which owns a 29.2% stake in the struggling miner, is ready to throw its weight behind the takeover by Sibanye Gold Ltd., Reuters reported Sept. 3.
Public Investment, which is also the second largest shareholder in Sibanye with an 11.2% interest, said the deal "will assist in driving consolidation in an ailing sector."
Bloomberg News recently reported that three of Sibanye's largest investors, including Public Investment, Gold One Group Ltd., and Exor Investments UK LLP, will likely vote in favor of the proposed acquisition.
The British regulator Competition and Markets Authority unconditionally approved the proposed merger in late June, while the South African Reserve Bank approved it in May.
Sibanye is offering 0.967 of a new common share for each Lonmin share held, valuing the latter at £285 million and potentially giving its shareholders ownership of about 11.3% of Sibanye's enlarged share capital.