One step left in Stillwater Mine sale
The Stillwater Mining Company (SMC) is one step closer to being sold to Sibayne Gold Limited of South Africa.
Stillwater announced Monday morning the pending sale had been cleared by the Committee on Foreign Investment in the United States (CFIUS) — meaning no national security issues exist regarding the merger.
Stillwater and Sibayne jointly requested the CFIUS review, said SMC Investor Relations Officer Mike Beckstead.
The final piece of the transaction will come April 25 with a vote of shareholders of both companies. A majority of each company’s outstanding shareholders are needed to cement the sale. Also needed is the “approval of the related issuance of shares by Sibayne in a rights offering by the holders of at least 75 percent,” according to SMC.
SMC shareholders consist of approximately 40 percent non-U.S. and Sibanye’s shareholders consists of approximately 40 percent U.S. shareholders.
The $2.2 billion all-cash transaction was unanimously approved by the SMC board of directors and publicly announced in December 2016. SMC CEO Mick McMullen has said the board feels that the merger is attractive to shareholders, citing the $18 per share purchase price as well as the diversification it brings.
Should the merger occur, little change is anticipated. Sibayne officials have been to the Nye mine site and the East Boulder site in Sweet Grass County for on-site visits.
By Marlo Pronovost / Yellowstone Newspapers
A mining vehicle exits the east portal of Stillwater Mine in 2012