Sibanye-Stillwater announced that it has exercised its option to subscribe for additional ordinary shares of DRDGOLD to attain a 50.1% shareholding in DRDGOLD.

The option was exercised on 8 January 2020 in terms of the DRDGOLD option agreement between Sibanye-Stillwater and DRDGOLD, entered on 22 November 2017 and approved by the DRDGOLD shareholders on 28 March 2018. Commenting on the exercise of the option, Sibanye-Stillwater CEO Neal Froneman said, “By securing the majority holding in DRDGOLD, a leading surface mining and processing company, we continue to create value for all stakeholders in line with our vision.”

The subscription price for each option share is R6.46 per share, payable in cash, representing a 22.69% discount to the closing price of R8.35 per DRDGOLD share. There is also a 10% discount to the 30-day volume weighted average traded price of DRDGOLD’s shares on the JSE on the day prior to the date of exercise of the option, being 7 January 2020. The exercise of the option will increase Sibanye-Stillwater’s holding in DRDGOLD from 38.05% (265 000 000 shares) to 50.1% (433 158 944 shares). “We are thrilled that the value of our initial shareholding has already increased by 147% over 17 months. The DRDGOLD team has a proven track record and has successfully implemented the Far West Rand Recoveries project, having reached its 500 000 tonne per month planned capacity for Phase 1,” Froneman added.

The option shares are expected to be listed on the JSE on 22 January 2020. DRDGOLD will continue to be listed on the JSE with a secondary listing on the NYSE in the form of American depository receipts. “We look forward to further value creation as DRDGOLD completes its detailed planning and possible implementation of Phase 2,” concluded Froneman.

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