Lonmin could receive bid following Glencore’s distribution of stake to shareholders
Glencore’s proposed in specie distribution of its 23.9% stake in Lonmin could prompt takeover bids for the listed Platinum mining group, the Financial Times reported. The newspaper cited people familiar with the situation who said Glencore had previously been approached regarding its stake in Lonmin. Glencore’s decision to distribute the shares in specie to its own shareholders could lead to renewed interest from possible buyers.
Glencore, a listed Switzerland-based commodities trader and mining group, announced yesterday, 11 February, that it plans to spin off its stake in Lonmin in 1H15.
A market report in the Financial Times noted speculation that Glencore could be looking to prompt a formal bid for its shareholding in Lonmin. Dealers cited by the report mentioned talk that Glencore had been approached with an offer for the Lonmin stake but deemed the offer too low.
The market report went on to note a separate theory, that Lonmin might be considering a rights issue and that Glencore was unwilling to back the cash call. However, analysts downplayed that theory, the item added.
Lonmin’s share price closed 14.3p down at 158.1p on the London Stock Exchange yesterday, giving the company a market capitalisation of GBP 923m (EUR 1.24bn).
Financial Times