December 9, 2016 / 6:06 AM / a year ago

BRIEF-S.Africa's Sibanye to buy Stillwater Mining for $2.2 bln

Dec 9 (Reuters) - Sibanye Gold Limited

* Proposed acquisition of stillwater Mining Company: creating a premier, global precious metals miner

* Has agreed to acquire all of outstanding common stock of Stillwater Mining for $18.00 per share in cash, or $2.2 billion in aggregate

* Consideration represents a premium of 23 pct to Stillwater’s prior day closing share price

* Post-closing of transaction, Sibanye expects to raise in capital markets new debt and at least $750 million in equity through a rights issue

* Sibanye’s two largest investors, which in aggregate represent 29 pct of Sibanye’s issued share capital, have confirmed their support of deal

* Board of directors of Stillwater has recommended that stockholders of Stillwater vote in favour of transaction

* Transaction is expected to close in Q2 of 2017

* Sibanye is targeting a net debt-to-2017 EBITDA ratio of no greater than 1.5x by end of fiscal year 2017

* Has obtained a $2.7 bln bridge loan commitment from Citi and HSBC to fund transaction consideration and repay stillwater’s convertible debentures

* Board of directors of Stillwater has unanimously determined and resolved that transaction is advisable, fair to and in best interests of co and stockholders Source text for Eikon: Further company coverage:

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