In return, DRDGold will issue approximately 265 million shares to Sibanye-Stillwater, giving the latter a holding of approximately 38% in DRDGold.
In addition, Sibanye-Stillwater has the option to subscribe for so many shares for cash to increase its holding in DRDGold to 50.1% within 24 months; and a mandatory offer by Sibanye-Stillwater to DRDGold’s other shareholders is waived.
"We are thrilled to be one step closer to realising immediate value for our underutilised surface infrastructure and tailings storage facilities, while retaining upside to the West Rand Tailings Retreatment Project and future growth in DRDGold,” says Neal Froneman, CEO of Sibanye-Stillwater.
While DRDGold CEO Niël Pretorius says: “This transaction is a step-change for DRDGold. We have doubled our reserves and secured infrastructure to access these very quickly. After many years of consolidation this is a major advance towards growing our company.”
Besides DRDGold shareholder approval, implementation of the acquisition is subject to the fulfilment or waiver of other conditions.
