Shareholders in Lonmin plc, have approved a financial restructuring to enable the platinum miner to weather the low PGM price environment. Lonmin said about 88% of its shareholders approved the US$400 million rights issue at a meeting in London yesterday.
The share issue was deeply discounted – at just GBp1/share, a 94% discount to the stock’s previous session closing price of GBp16.25.
Shareholders also approved a 100-to-1 share consolidation and authorised its directors to allot new shares.
In addition to the rights issue, the company is replacing its existing debt with a new debt facility for US$370 million with maturity in May 2020.
Lonmin shareholders approve rights issue: LMI
