Sibanye-Stillwater has completed that the restructuring of Lonmin Plc, which has since been renamed Sibanye UK Limited.
Following the acquisition of Lonmin in June 2019, Sibanye-Stillwater has had constructive engagements with Phembani Group and the other Marikana B-BBEE shareholders regarding the restructuring process. Phembani inherited its participation in the Marikana B-BBEE structure in December 2015, as part of a larger non-related transaction.
“We welcome the restructuring of the Marikana B-BBEE shareholder structure, which is the result of engagements with all the relevant shareholders in order to reach an agreement that is sustainable, ensures the real accruing of value to the Marikana B-BBEE shareholders and is fair to all stakeholders,” commented Neal Froneman, Sibanye-Stillwater CEO.
The restructuring has been implemented to facilitate different areas including access for the Marikana B-BBEE shareholders to distributable Marikana dividends in the short and medium term through the introduction of a 10% trickle dividend while any intercompany debt is outstanding. Thereafter, the Marikana B-BBEE shareholders will participate fully in their attributable portion of Marikana’s dividends.
In addition, it will also enable the creation of a sustainable B-BBEE financing structure for Marikana which is consistent with Sibanye-Stillwater’s transformation objectives. Froneman added that the revised structure will allow for a sustainable capital structure for the Marikana B-BBEE shareholders, as well as immediate access to distributable cash flow and the ongoing transfer of tangible value. “This re-structuring is supported by all Marikana B-BBEE shareholders,” he concluded.