Sibanye CEO Neal Froneman
Precious metals miner Sibanye-Stillwater's shareholders have voted in favour of the company's acquisition of platinum miner Lonmin.
The company's shares rose by 2.48% on Tuesday morning after announcing that 99.65% of shareholders in attendance at a general meeting had voted in favour of the transaction.
Sibanye in December 2017 announced an all-share offer for Lonmin, which valued the company at about R5.15-billion.
The initial offer entailed a share exchange ratio of 0.967, but the agreement between Sibanye and Lonmin was amended in April this year, with Lonmin shareholders to receive one Sibanye share for each Lonmin share held.
The transaction remains subject to approval by Lonmin shareholders, who will vote on the matter later on Tuesday.
While Sibanye CEO Neal Froneman and Lonmin CEO Ben Magara believe the transaction to be positive for both companies, recent media reports have indicated that Lonmin's biggest shareholder, the Public Investment Corporation (PIC), has had its reservations regarding the transaction.
Bloomberg last week also quoted Standard Bank as stating that the transaction undervalued Lonmin's assets.