Sibanye will offer $0.195, or R2.66, a share for Aquarius, it said in the statement.
Advertisement
RBC Capital reissued their sector perform rating on shares of Aquarius Platinum Limited (LON:AQP) in a research report sent to investors on Wednesday morning, Analyst Ratings Net reports. Credit Suisse reaffirmed an outperform rating and set a GBX 25 ($0.38) target price on shares of Aquarius Platinum Limited in a research report on Monday, July 13th.
Aquarius Platinum Limited (LON:AQP) is engaged in mine development in South Africa.
Sibanye shares were also higher, rising 5.41% to R18.90.
For Aquarius, the deal would allow its shareholders to exit the industry whose gloomy outlook was compounded late last month by disclosures Volkswagen AG (Other OTC: VLKAF – news) falsified US vehicle emission tests.
That’s close to the assets that Sibanye agreed to buy from the world’s largest platinum producer for at least $331 million on September 9.
Sibanye will offer 2.66 rand (about 20 cents) per share for Aquarius, and Aquarius’s board has urged shareholders to vote in support of the offer, Bloomberg reports.
Sibanye’s board has unanimously approved the deal.
Sibanye CEO Neal Froneman said the acquisition of Aquarius is complementary with its Rustenburg acquisition.
Aquarius’ mines are mechanized and low cost, which SBGL says will help to consolidate its position in South Africa’s platinum sector. “At higher PGM prices, these assets will substantially increase earnings and value for Sibanye shareholders”, said Froneman.
Advertisement
There are about 1,500 employees at Aquarius’ Mimosa mine in Zimbabwe and 8,500 at the Kroondal operation in South Africa, where the hardline Association of Mineworkers and Construction recently ousted arch rival the National Union of Mineworkers as the dominant union in the shafts.
