Sibanye Gold (NYSE:SBGL) continues its push into the platinum market with the proposed acquisition of Aquarius Platinum (LON:AQP).
It has made a 12.9p per share offer for Aquarius, a 60% premium to yesterday’s close, which values the platinum miner at around £194mln.
It follows Sibanye buying up Anglo American’s (LON:AAL) Rustenburg platinum assets in South Africa last month for up to £210mln.
Aquarius’s main asset, the Kroondal joint venture with Anglo in South Africa, is near the previously bought assets.
Neal Froneman, chief executive of Sibanye, said: “For Sibanye the transaction has a strong strategic and financial rationale, both as a stand-alone transaction, but also when considered in conjunction with the recently announced acquisition of the Rustenburg PGM operations.”
It will also give Sibanye a base in Zimbabwe, through Aquarius’s Mimosa venture with Impala Platinum Holdings and will allow it to cut costs across its existing platinum operations, the company said.
Aquarius’s board has unanimously recommended the offer.
Shares in Aquarius jumped 41% to 11.3p this morning on the news.