JOHANNESBURG, April 18 South African miner
Sibanye Gold plans to tap shareholders for about $1
billion to partly fund a takeover of U.S.-based Stillwater
Mining Co, it said on Tuesday, a day after the deal
secured a U.S. regulatory approval.
The Committee on Foreign Investment in the United States,
which examines deals for potential national security concerns,
has cleared Sibanye's $2.2 billion takeover of the country's
sole platinum and palladium miner.
The deal will increase South Africa's grip over global
platinum and palladium supply and underline Sibanye Chief
Executive Neal Froneman's determination to branch out of gold
mining and South Africa.
"Sibanye management and board has determined that a US$1
billion equity capital raise, through the rights offer, is
optimal given current market conditions," it said in a
The company also said it would raise a further $1 billion in
debt, most likely in the bond market, to fund the transaction.
It expects the two tranches of capital to be raised by the
end of June.
The deal is still subject to shareholder votes of both
companies. Stillwater and Sibanye have scheduled shareholders'
meetings on April 25 to vote on the proposed merger.
(Reporting by Tiisetso Motsoeneng, editing by David Evans)