Xstrata purchase of Lonmin shares
October 01, 2008 | by Xstrata
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October 01, 2008, Zug. Xstrata plc (“Xstrata”) announces that it has today acquired 22,232,940 Lonmin ordinary shares (“Lonmin Shares”) at an average price of approximately £19.79 per Lonmin Share for a total cash consideration of approximately £440 million ($786 million). These acquisitions will be entirely funded through the Xstrata Group’s debt facilities. The number of Lonmin Shares acquired today represents approximately 14.2% of Lonmin’s issued ordinary share capital.
The Lonmin Shares acquired today together with those previously acquired by Xstrata represent approximately 24.9% of Lonmin’s issued ordinary share capital (38,939,421 Lonmin Shares). The Xstrata Group’s shareholding in Lonmin has been acquired for a total aggregate cash consideration of approximately £991 million ($1,770 million).
Mick Davis, Xstrata plc Chief Executive commented: “Xstrata’s purchase of an additional stake in Lonmin today provides us with a significant shareholding in one of the world’s largest platinum producers. We continue to believe the medium and long-term fundamentals of platinum are robust and that the structure of the platinum industry remains attractive.
“Xstrata has today entered into a new three-year $5 billion multi-currency revolving loan facility with a group of its relationship banks. The new facility will be used to refinance existing debt and for general corporate purposes and underlines Xstrata’s robust financial position and flexibility. Xstrata remains well positioned to execute its strategy of growth and value creation for shareholders from a broad range of growth options.”
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Source: Xstrata, Press release