Dual-listed Sibanye-Stillwater has, effective April 13, restructured the previously highly indebted Lonmin broad-based black economic empowerment (BBBEE) structure in relation to Western Platinum (WPL) and Eastern Platinum (EPL), with a view to ensuring the sustainability of the BBBEE shareholding in Marikana and facilitating the realisation of value to the BBBEE shareholders.
Subsequent to its acquisition of Lonmin in June 2019, Sibanye said it had had constructive engagements with the Phembani group, which inherited its participation in the Marikana BBBEE structure in December 2015, as part of a larger nonrelated transaction, and the other Marikana BBBEE shareholders regarding the restructuring.
The restructuring has been implemented to facilitate, besides other things, access for the Marikana BBBEE shareholders to distributable Marikana dividends in the short and medium term through the introduction of a 10% trickle dividend while any intercompany debt is outstanding.
Thereafter, the Marikana BBBEE shareholders will participate fully in their attributable portion of Marikana's dividends.
Moreover, it will facilitate the longer-term accruing of value to the Marikana BBBEE shareholders through the release of Incwala Platinum to repay the loans made to it by WPL; and the replacement of historical debt with a more affordable preference share arrangement.
It will also facilitate the creation of a sustainable BBBEE financing structure for Marikana which is consistent with Sibanye's transformation objectives.
"We welcome the restructuring of the Marikana BBBEE shareholder structure, which is the result of engagements with all the relevant shareholders to reach an agreement that is sustainable, ensures the real accruing of value to the Marikana BBBEE shareholders and is fair to all stakeholders.
“The revised structure will allow for a sustainable capital structure for the Marikana BBBEE shareholders, as well as immediate access to distributable cash flow and the ongoing transfer of tangible value. This re-structuring is supported by all Marikana BBBEE shareholders,” says Sibanye CEO Neal Froneman.