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SIBANYE GOLD LIMITED - SA Competition Commission makes recommendation to the Tribunal

Release Date: 18/09/2018 09:30
Code(s): SGL LON     PDF:  
Wrap Text
SA Competition Commission makes recommendation to the Tribunal

SIBANYE GOLD LIMITED
Trading as Sibanye-Stillwater
Registration Number 2002/031431/06
Incorporated in the Republic of South Africa
Share Code: SGL
ISIN Code: ZAE000173951
Issuer Code: SGL
(“Sibanye-Stillwater” or “the Company” or “the Group”)

Lonmin Plc (Incorporated in England and Wales)
(Registered in the Republic of South Africa under registration number
1969/000015/10)
JSE code: LON
Issuer Code: LOLMI & ISIN : GB00BYSRJ698 ("Lonmin")
LEI: 213800FGJZ2WAC6Y2L94



SA Competition Commission makes recommendation to the Tribunal that the
Lonmin acquisition be approved subject to agreed conditions


Johannesburg, 18 September 2018. Sibanye-Stillwater (Tickers JSE: SGL and
NYSE: SBGL) and Lonmin Plc ("Lonmin") are pleased to note that the South
African Competition Commission (“the Commission”) has recommended that the
South   African Competition  Tribunal (“Tribunal”) approves the proposed
acquisition of Lonmin Plc, subject to certain conditions, which are agreeable
to both Sibanye-Stillwater and the Commission. The Tribunal is the regulatory
body which provides final approval for large mergers in South Africa.


Shareholders are referred to the announcement on 14 December 2017, relating
to the offer for the entire issued and to be issued share capital of Lonmin
(the "Offer") for further details on the Offer.


Despite the Commission noting a vertical and horizontal overlap of Sibanye-
Stillwater and Lonmin’s activities in the PGM industry, the Commission found
that the proposed merger is unlikely to substantially prevent or lessen
competition in any of the markets affected by the proposed merger.


Certain conditions pertaining to public interest concerns related to the
merger,   agreed    to   between   the    Commission and Sibanye-Stillwater, are
consistent with Sibanye-Stillwater’s approach to stakeholder engagement and
its vision of “delivering superior value to all stakeholders”.


These conditions include, inter alia:
   -    to mitigate the potential impact of retrenchments, Sibanye-Stillwater
        will investigate and implement certain mining projects, subject to the
        economic viability of the projects being supported by prevailing future
        metal   prices   and   enhanced operating costs achieved through the
        realisation of expected synergies.
    -    In further mitigation of the potential impact of job losses in the
           region, Sibanye-Stillwater has also committed to investigate the
           feasibility of an Agri-Industrial Community Development Programme in
           the Rustenburg area similar to the Bokamoso Barona Initiative, a
           public-private partnership on the West Rand, which was announced on
           Friday 7 September 2018.
     -    In addition, Sibanye-Stillwater will honour Lonmin’s current and future
           Social and Labour plans as agreed with the Department of Mineral
           Resources, as well as the agreements currently in place with the Bapo
           ba Mogale Community.
      -    Finally, the Company continues to support transformation in the mining
           industry,    including the development of Historically Disadvantaged
           Persons (“HDP”).  In this regard Sibanye-Stillwater will both honour
           existing contracted HDP suppliers to Lonmin and endeavour to continue
           to utilise HDP suppliers, on reasonable commercial terms, in line with
           the Company’s existing procurement policies.


Neal Froneman CEO of Sibanye-Stillwater commented: “The   positive
recommendation by the Commission to the Tribunal is pleasing and on terms
which we believe are fair, reasonable and in the best interest of all
stakeholders. We are confident that this transaction will not only bring
greater stability to these assets and ensure a more sustainable and positive
future, but also demonstrate Sibanye-Stillwater’s commitment to the South
African mining sector.”


Ben Magara, CEO of Lonmin added: "We are pleased that the parties have reached
the agreed conditions and that our transformation journey will continue."


The Offer remains subject to the satisfaction or (where applicable) waiver
of the outstanding Conditions set out in Appendix I to the announcement of
the Offer by Lonmin and Sibanye-Stillwater on 14 December 2017. Such
Conditions include, amongst others, the approval of the Offer by the Tribunal
and the approvals of Lonmin and Sibanye-Stillwater shareholders and the
courts of England and Wales.


Both Sibanye-Stillwater and Lonmin remain fully committed to the Offer.
Further announcements will be made in due course.


Ends.


Sibanye-Stillwater Investor relations contact:
James Wellsted
Head of Investor Relations
Email: ir@sibanyestillwater.com
+27 (0) 83 453 4014




Lonmin Investor relations contact:


Tanya Chikanza
Email: ir@lonmin.com
Tel: +27(0)83 391 2859


Sponsor: J.P. Morgan Equities South Africa (Proprietary) Limited


FORWARD LOOKING STATEMENTS


This announcement includes “forward-looking statements” within the meaning
of the “safe harbour” provisions of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements may be identified
by the use  of words such as “target”, “will”, “forecast”,  “expect”,
“potential”, “intend”, “estimate”, “anticipate”, “can” and other similar
expressions that predict or indicate future events or trends or that are not
statements of historical matters. The forward-looking statements set out in
this announcement involve a number of known and unknown risks, uncertainties
and other factors, many of which are difficult to predict and generally
beyond     the    control   of     Sibanye-Stillwater, that  could  cause Sibanye-
Stillwater’s actual results and outcomes to be materially different from
historical results or from any future results expressed or implied by such
forward-looking statements. These forward-looking statements speak only as
of the date of this announcement. Sibanye-Stillwater undertakes no obligation
to update  publicly or  release  any   revisions to these forward-looking
statements to reflect events or circumstances after the  date of this
announcement or to reflect the occurrence of unanticipated events, save as
required by applicable law.


Additional Information


The release, publication or distribution of this announcement in certain
jurisdictions may be restricted by law. Persons who are not resident in the
United Kingdom or who are subject to the laws of other jurisdictions should
inform themselves of, and observe, any applicable requirements. Any failure
to comply with applicable requirements may constitute a violation of the
securities law of any such jurisdiction.
This announcement is not intended to, and does not, constitute or form part
of any offer, invitation or the solicitation of an offer to purchase,
otherwise   acquire,   subscribe   for,   sell   or   otherwise   dispose   of,   any
securities whether pursuant to this announcement or otherwise.

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