Sibanye’s “transformative” deal a vote of No Confidence in SA

By Alec Hogg

Mining veteran Neal Froneman is hard at work selling Sibanye's effective offer of $2.7bn to buy Stillwater Mining Company of Montana. It's the deal of his life, an acquisition worth virtually double Sibanye's own $1.4bn market valuation. But it is so high risk as to reek of desperation.

Sibanye has agreed to borrow billions of US dollars and is so determined it signed a $33m break fee on top of what insiders describe as a "full" price. Sibanye tabled a cash offer of $18 for shares which traded at $5.35 in January.

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