Precious metals miner Sibanye-Stillwater has made an offer to shareholders holding fewer than 100 shares in the company to buy out those shares as part of an odd-lot offer.
It has also made an offer to repurchase shares from holders of between 100 and 400 of the company's shares.
Sibanye notes that, as at September 30, it had about 30 000 ordinary shareholders, which reflects a near 60% increase compared with the number of shareholders prior to the acquisition of Lonmin in June 2019.
The aggregate shareholding in Sibanye of shareholders who own fewer than 400 ordinary shares represents about 50% of the number of total 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 Sibanye 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 offers are subject to approval by shareholders at a general meeting to be held on December 1.
The offer price will be at a premium of 5% to the volume-weighted average price of a Sibanye share on the JSE over the ten trading days up to the day immediately prior to the finalisation date announcement, which is expected to be announced on or before December 11, less the dividend withholding tax levied in terms of the Income Tax Act.