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Sibanye Gold makes £285M all-scrip bid for Lonmin

South Africa-based Sibanye Gold Ltd. agreed on terms of an all-share offer to wholly acquire Lonmin Plc in a deal valuing the latter at about £285 million.

Each Lonmin shareholder will receive 0.967 of a new Sibanye share, according to a Dec. 14 release. The offer values each Lonmin share at 86.3 British pence and represents a premium of about 35% to the closing price of 63.8 pence Dec. 13.

Following the transaction, Lonmin shareholders will hold about 11.3% of Sibanye's enlarged capital, and Sibanye shareholders will hold the remaining 88.7%.

Lonmin's directors unanimously recommended shareholders to vote in favor of the takeover offer. The deal is conditional on the approval of at least 75% from Lonmin shareholders. The transaction is expected to become effective in the second half of 2018.

Sibanye recently agreed to exchange certain surface gold processing assets and tailings storage facilities for a 38% stake in DRDGold Ltd. in a deal valued at 1.3 billion South African rand.

Lonmin, meanwhile, secured full ownership in the Pandora platinum project in South Africa by acquiring Anglo American Platinum Ltd.'s 42.5% stake in the project and Mvelaphanda Resources Pty. Ltd.'s 7.5% interest.