Sibanye-Stilwater, the largest individual producer of gold from South Africa and is one of 10 largest gold producers globally, made a £167m offer for Lonmin, a British producer of platinum group metals. Under the terms of the offer, each Lonmin shareholder will be entitled to receive: for each Lonmin Share 0.967 new Sibanye-Stillwater shares. The offer values each Lonmin Share at 86.3 pence and represents a premium of approximately 35% to the closing price per Lonmin share of 63.8 pence on 13 December 2017. Commenting on the Offer, Neal Froneman, Chief Executive Officer of Sibanye-Stillwater, said: “The proposed combination with Lonmin positions the Enlarged Sibanye-Stillwater Group as a leading mine-to-market producer of PGMs in South Africa. The realisation of significant synergies between the operations, which will deliver longer term benefits for all stakeholders of both companies is expected to result in this being a value accretive transaction for Sibanye-Stillwater Shareholders. The flexibility inherent in the larger regional PGM footprint will create a more robust business, better able to withstand volatile PGM prices and exchange rates. Furthermore, the sizeable combined resource base, with its pipeline of advanced and early stage projects, also offers significant growth and value upside potential under appropriate economic and market circumstances.”