Sibanye Shares Plunge on Convertible Bond Sale
- Miner offers $500 million bond, partly to fund Reldan purchase
- Citi sees ‘acquisition risk overhang’ weighing on the shares
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Sibanye Stillwater Ltd. plunged the most since March 2020 after the South African miner of platinum-group metals said it will raise $500 million by selling bonds convertible into its shares, a move that will dilute existing investors’ holdings.
The stock sank as much as 25% in Johannesburg, wiping out about 15.2 billion rand ($824 million) of its market value. The use of the bond proceeds includes funding the Nov. 9 purchase of US metals recycler Reldan Group of Companies for $155.4 million in cash, Sibanye said in a statement Tuesday.