Lonmin shareholders gave their approval for a $407m rights issue designed to reduce debt
and recapitalise the world’s third-largest platinum miner on Thursday.
The
holders of 54% of the 587-million shares in issue gave 88% approval to
all five resolutions voted on in London today, the company said in a
statement. The rights offer closes on 10 December this year.
“Lonmin is now able to carry out its detailed and carefully structured Business Plan,” said Lonmin chairman Brian Beamish.
The hugely discounted and fully underwritten rights issue of
nearly 27-billion shares to raise $369m after expenses forced
shareholders to follow their rights and buy shares or be diluted nearly
out of existence, analysts have said, referring to the 94% discount.
A
consortium of banks has agreed to amended debt facilities, pushing back
loan repayments from the middle of next year to 2020 and reducing the
debt burden to $370m from the $500m due next year.
Lonmin has
opted to narrow its focus to just four key mines in its portfolio, down
from 11, and is halfway through laying off 6,000 employees and
contractors as it lowers its production profile to 650,000 ounces of
platinum next year from 750,000oz in the financial year to end-September
2015.
• Read Financial Mail’s Lonmin analysis here
by Allan Seccombe,
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