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Johannesburg - Shareholders are in revolt over Lonmin’s stunning share issue – with a discount of 94% on its share price – which could affect the company’s survival if shareholders vote against it on Thursday.
A fund manager with shares in the wavering platinum producer said: “Long-term shareholders who stood by the company during difficult times are being kicked in the teeth.”
The share price has nose-dived by 45% since the huge discount was announced on Monday. To City Press’ knowledge, South Africa and London, where Lonmin has its primary listing, have never seen such a big discount granted in a share issue. If approved, it would mean a return of $407 million (R5.8 billion) to keep the company going. The drop in the share price reduced Lonmin’s market value to about R1.3 billion.
