Biggest Africa investor goes to London for Lonmin decision

JOHANNESBURG: South Africa’s Public Investment Corp. faces a tough choice: back Sibanye Gold Ltd’s takeover of Lonmin Plc, and take a hit on its investment, or scupper the deal and risk having to pony up more cash for the platinum miner.

When Lonmin shareholder votes are tallied next Tuesday at a meeting in London, the PIC’s 30% stake would be enough to block the acquisition. While the takeover was originally touted as a lifeline as Lonmin hemorrhaged cash, Africa’s largest money manager is troubled by the drop in Sibanye’s stock since the all-share deal was announced in December 2017, according to a person familiar with the matter.