‘It’s in shareholders’ best interests to accept mining company rights offer’
Lonmin has asked investors for more money and warned that if it can’t raise the necessary capital.
JOHANNESBURG - Lonmin says it's in the shareholders' best interests to accept the mining company's rights offer if it's to continue operating.
Lonmin has asked investors for more money and warned that if it can't raise the necessary capital through a share issue, it may have to cease trading altogether.
The company has been hit by low platinum prices and strikes at its Rustenburg operations.
Lonmin's CEO Ben Magara says the offer on the table is the best deal for the company and its shareholders.
"What we've put on the table is that every stakeholder has to [make] some short-term sacrifice; unfortunately we've engaged our employees and 6,000 jobs are at risk. So far 3,100 of them have already left and we have a workable and working relationship with our unions."