By Kevin Crowley
(Bloomberg) — Lonmin Plc got acceptances for 70.93 percent of the discounted shares it offered in an underwritten sale that’s part of a plan by the world’s third-biggest producer of platinum to save itself from collapse.
Shareholders agreed to buy 19.2 billion new shares and HSBC Holdings Plc, JPMorgan Cazenove and Standard Bank Group Ltd.’s South African unit will procure subscribers for the remaining 7.8 billion by Dec. 14, Johannesburg-based Lonmin said in a statement Friday. The new securities will begin trading on the London Stock Exchange at 8 a.m. local time Friday.
“To the extent that subscribers cannot be procured on the basis outlined above, the relevant new shares will be subscribed for by HSBC, JPMorgan Cazenove and Standard Bank,” Lonmin said.
The producer is selling $407 million of shares at a 94 percent discount to the market price before the offer was announced as it seeks to bolster its balance sheet amid at platinum price that’s down 29 percent this year. The company has been plagued by rising costs and discontent among its labor force, which went on a record-long five-month strike in 2014.
Read also: Lonmin plunges to new record, off 38%. Investors exit ahead of rights issue.
The stock is down 95 percent this year and yesterday climbed 2 percent to 1.03 pence in London.
Lonmin raised about $457 million from shareholders in 2009 and a further $817 million in 2012, after police opened fire on striking miners near one of the producer’s shaft in Marikana. At least 44 people were killed.
Lonmin Media Release
Lonmin Plc (“Lonmin” or “the Company”) today announces that, as at 11.00 a.m. (London time) on 10 December 2015 and 12.00 p.m. (Johannesburg time), being the latest time and date for receipt of valid acceptances, it had received valid acceptances in respect of 19,150,556,428 New Shares, representing 70.93 per cent of the total number of New Shares offered to Qualifying Shareholders pursuant to the Rights Issue announced by the Company on 9 November 2015.
It is expected that the New Shares in uncertificated form will be credited to CREST or Strate accounts, as applicable, on 11 December 2015. Definitive share certificates in respect of New Shares in certificated form will be dispatched to UK Shareholders by 31 December 2015 and South African Shareholders by 29 December 2015. It is expected that the New Shares will commence trading fully paid on the London Stock Exchange at 8.00 a.m. (London time) today, 11 December 2015. Listing of the New Shares and dealings on a deferred settlement basis on the JSE commenced on 4 December 2015.
HSBC, J.P. Morgan Cazenove and Standard Bank will, acting severally and not jointly (or jointly and severally) and as agents of the Company, use their respective reasonable endeavours to procure subscribers for the balance of 7,847,160,972 New Shares not validly taken up under the Rights Issue by no later than 14 December 2015, subject to certain terms and conditions agreed with the Company. A further announcement as to the number of New Shares for which subscribers have been procured by HSBC, J.P. Morgan Cazenove, and Standard Bank will be made in due course.
Any premium over the UK Issue Price of 1.00 pence (or its equivalent in ZAR at the time of sale, as the case may be) per New Share and the related expenses of procuring subscribers (including any applicable brokerage and other commissions and any amounts attributable to VAT and currency conversion costs) will be paid to the relevant holder of the Rights at the time they lapsed in accordance with the terms of the Rights Issue, pro rata to their lapsed provisional allotments, save that, in accordance with the terms of the Rights Issue, individual amounts of less than GBP 5.00 (or the equivalent in ZAR, calculated using the spot exchange rate at the date of payment, which was approximately ZAR115.64 based on the spot exchange rate at the close of business on 10 December 2015) will not be so paid but will be aggregated and retained for the Company’s own benefit.
If and to the extent that subscribers cannot be procured on the basis outlined above, the relevant New Shares will be subscribed for by HSBC, J.P. Morgan Cazenove and Standard Bank, acting severally but not jointly (or jointly and severally), as principals pursuant to the Underwriting Agreement or by sub-underwriters or other subscribers (if any) procured by the Underwriters, in each case, at the UK Issue Price or at the SA Issue Price on the terms and subject to the conditions of the Underwriting Agreement.
Bapo BEE Placing
Application has been made for the 617,581,491 Bapo BEE Shares allotted to the Bapo Community to be admitted to listing on the Official List of the UK Listing Authority, to trading on the London Stock Exchange’s main market for listed securities (premium segment) and for listing and trading on the Main Board of the JSE Ltd, with admission to trading expected to occur on 11 December 2015.
Consolidation
Following approval of the Consolidation at the General Meeting on 19 November 2015, applications have been made to the FCA, the London Stock Exchange and the JSE Ltd for the Consolidation to be reflected on the Official List and the JSE’s Main Board, respectively, and Lonmin’s listings on each exchange. The Consolidation Ratio will be 100:1 and it is expected that trading and dealing in the Consolidated Ordinary Shares will commence on the London Stock Exchange at or around 8.00 a.m. (London time) and on the JSE at or around 9.00 a.m. (Johannesburg time) on 18 December 2015.
Definitions used in the Prospectus dated 9 November 2015 shall have the same meanings when used in this announcement, unless the context requires otherwise.
