JSE-listed gold miner Sibanye-Stillwater advises that all conditions precedent to its odd-lot and specific offers have been fulfilled and the company will soon proceed with its implementation.
The company on November 2 announced its intention to make an odd-lot offer to shareholders holding fewer than 100 Sibanye shares, and a specific offer to those holding more than 100 shares but equal to or fewer than 400 shares.
The aggregate shareholding in Sibanye of shareholders who own fewer than 400 ordinary shares represents about 50% of the total number shareholders and 0.05% of all Sibanye shares in issue.
Sibanye says the offers will provide offer holders with the ability to dispose of their shares on an efficient basis and also provide liquidity for those offer holders who elect not to retain their offer holdings.
For Sibanye, the offers will reduce the complexity and cost of managing a significantly larger shareholder base.
The offer price is at a premium of 5% to the volume-weighted average price of a Sibanye share trading on the JSE over the ten trading days up to December 10, with the offer price equal to a gross amount of R57.20, less any dividends withholding tax (DWT).
The cash consideration paid by Sibanye will constitute a dividend and the offers will therefore give rise to a liability for DWT at a rate of 20% in the event that the offer holder does not qualify for an exemption from DWT, or in the case of a non-resident shareholder.
In the event that the offer holder does not qualify for an exemption or reduced DWT rate, the net offer price will be R45.70, being R57.20 less 20% DWT.
The last day to participate in the offers has been set for December 21, while the offer implementation date has been set for December 28, following which the results of the offers will be announced.