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SGL to restructure, turn wholly-owned subsidiary into group holding company
Posted on Monday, 07 October 2019 10:15
Sibanye Gold (SGL) is internally reorganising to turn wholly-owned Sibanye-Stillwater into the ultimate holding company of the listed South African precious metal mining group.
The scheme of arrangement, on the basis of a 1:1 exchange, is expected to create a more efficient corporate structure that would facilitate growth.
Sibanye-Stillwater was incorporated in November 2014, converted to a public company in July 2018, has one ordinary share in issue, which is held by SGL, and no trading history or assets.
The current parent dates to 2012, when Gold Fields unbundled its South African Kloof, Driefontein and Beatrix gold operations, as well as various service companies.
Resulting entity GFI Mining South Africa listed in Johannesburg and New York in 2013 under a new name, SGL.
In the intervening six years, the company has been acquisitive and created a significant portfolio of platinum group metals (PGM) assets, which are mainly held by wholly-owned subsidiary Sibanye Platinum.
SGL completed the acquisition of Lonmin and its associated deposits, retreatment, smelter and refinery assets in South Africa in June 2019.
The group now claims to be the world’s largest primary producer of platinum, the second biggest by palladium and a global leader in terms of gold.
Its diversified assets and projects are spread across the US, Canada, Argentina, South Africa and Zimbabwe.
At the moment, the corporate structure of SGL has the domestic gold operations, which include a 38.0 per cent equity interest in surface gold tailings retreatment company DRDGOLD, at holding company level.
The group wants to create a business model where these assets and those of its PGMs are each held within their own distinct legal entities.
Sibanye-Stillwater is slated to become the new holding company, and the new gold subsidiary would retain the name SGL.
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