Shareholders in platinum miner Lonmin have voted in favour of a 817m-dollar rights issue to repair its balance sheet.
Investors representing 77.7% of the issued share capital voted, with 91.1% in favour and 8.9% against.
After much uncertainty its largest shareholder Xstrata, which holds a 24.63% stake, announced on November 15th that it would back the fundraising.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The nine-for-five rights issue of up to 365.5m shares at a UK issue price of 140p per new share will raise about $777m net.
The proceeds from the rights issue will be used to permanently reduce the company's available US dollar-denominated borrowing facilities from $700m to $400m and partially pay down outstanding amounts on its remaining facilities.
-
The top stocks in the FTSE 100After a year of strong returns for the UK’s flagship index, which FTSE 100 stocks have posted the best performance in 2024?
-
A junior ISA could turn your child’s pocket money into thousands of poundsPersuading your child to put their pocket money in a junior ISA might be difficult, but the pennies could quickly grow into pounds – and teach them a valuable lesson about money
