Lonmin shares jumped 20% in early London trading on Thursday after the platinum miner recommended a £285m takeover bid from South African gold producer Sibanye-Stillwater.
An all-stock offer from Sibanye will see Lonmin shareholders receive 0.967 new Sibanye-Stillwater stock for each Lonmin share.
The proposed deal values each Lonmin share at 86.3 pence. Lonmin shares were trading at 76.54 pence as at 0906 GMT on Thursday, up 20.6% from Wednesday´s close.
Neal Froneman, chief executive of Sibanye-Stillwater, said: “The realisation of significant synergies between the operations, which will deliver longer term benefits for all stakeholders of both companies is expected to result in this being a value accretive transaction for Sibanye-Stillwater Shareholders," said Neal Froneman, Chief Executive Officer of Sibanye-Stillwater.
“The combination with Sibanye-Stillwater provides a stronger platform for Lonmin Shareholders and other stakeholders to benefit from the long-term upside potential of an enlarged Sibanye-Stillwater Group with greater geographical and commodity diversification,” added Ben Magara, chief executive of Lonmin.