Platinum mining giant Sibanye-Stillwater begins business overhaul
South Africa’s Sibanye-Stillwater (JSE:SGL) (NYSE:SBGL) is planning to acquire 100% of the share capital of Sibanye Gold as part of a necessary restructuring following the company’s recent merger with struggling rival Lonmin.
The move, the Johannesburg-based precious metals miner said, aims to create a more efficient group structure, which is expected to be achieved by creating a new holding company.
The entity will keep Sibanye-Stillwater as its name and will be listed on the Johannesburg Stock Exchange with the same shareholders and exactly the same shares in the new holding company will be issued to existing investors.
The gold subsidiary will continue to be called Sibanye Gold. Other acquisitions completed in recent years, including Aquarius Platinum and Rustenburg Platinum, have been incorporated as subsidiaries of Sibanye-Stillwater, it said.
Last week, the company announced plans to axe more than 5,000 jobs at Marikana platinum mine, which has been running at a loss.
Sibanye, which moved into a net debt position in the second quarter, has committed to aggressively reducing debt in the current financial year.