Stillwater Mining Company (NYSE:SWC) shares are surging 18% Friday morning on news that Billings, MT-based materials company will fetch north of $2 billion in a buyout.
The all-cash deal amounts to a total of $2.2 billion, a 61% premium to Stillwater’s average share price over the past year. The deal trades at a 25% premium to SWC stock’s average over the past 30 days.
Here’s what Stillwater CEO Mick McMullen had to say:
“This compelling all-cash transaction delivers immediate value to shareholders and appropriately recognizes the value of Stillwater’shigh-grade and long-life assets and world-class metallurgical and PGM recycling complex, as well as Stillwater’s potential for brown field expansions through the development of our Blitz and Lower East Boulder projects.”
McMullen goes on to credit this deal to the “significant operational and productivity improvements” of his company recently, while assuring investors that Sibanye will strive to keep Stillwater’s core thesis intact:
“Sibanye has indicated its commitment to maintaining and investing in Stillwater’s Montana operations and will look to leverage our best practices, industry leading mining expertise and proven ability to drive improvements and efficiencies whilst improving safety across their entire business. I would like to thank the many Stillwater employees whose hard work has transformed the company into a world-class operator with the assets and team able to deliver value over many future decades.”
Stillwater’s board has approved the deal, while the two largest shareholder’s in Sibanye have pledged their support.
This deal marks Sibanye’s first venture outside of South Africa as the gold company diversifies into U.S. palladium and platinum, and the third platinum buy since the end of 2015.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.