29 Jun 2018 15:31
LEI No: 213800FGJZ2WAC6Y2L94
REGULATORY RELEASE
29 June 2018
Lonmin Plc ("Lonmin" or "the Company") to sell its 50% interest in Petrozim
Lonmin Plc is pleased to announce that it has today entered into a conditional Sale of Shares Agreement to sell its 50% interest in Petrozim Line (Private) Limited ("Petrozim") for a gross cash consideration of USD14,750,000 to the National Oil Infrastructure Company of Zimbabwe (Private) Limited ("NOIC") (the "Transaction"). In addition, Lonmin will receive USD8,000,000 in the form of special dividends from Petrozim. The Transaction forms part of Lonmin's ongoing programme to dispose of non-core assets. The purchase price and special dividends will be paid in cash on completion of the Transaction and will be used to improve the Company's liquidity.
Petrozim, which is incorporated in Zimbabwe, owns and operates the Feruka to Harare fuel pipeline and currently holds the sole and exclusive right to transport all petroleum products imported into Zimbabwe through the pipeline. Lonmin's interest in Petrozim has been impaired to nil and no attributable profits were recorded in the Company's report and accounts for the year ended 30 September 2017.
The closing of the Transaction is subject to various conditions precedent including approvals from the Zimbabwean Competition Commission, Zimbabwe Revenue Authority, in addition to the consent of Lonmin's lending banks. Subject to fulfilment of the conditions precedent, the Transaction is expected to complete in Q4 of FY2018.
The Standard Bank of South Africa has acted as Financial Adviser to Lonmin in relation to the Transaction.
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Investors / Analysts:
Tanya Chikanza (Executive Vice President: Corporate Strategy, Investor Relations and Corporate Communications) | +27 83 391 2859/+44 20 3908 1073
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Andrew Mari (Investor Relations) +27 60 564 6419
Media:
Wendy Tlou (Head of Communications) | +27 83 358 0049 | |
Anthony Cardew, TB Cardew Tom Allison, TB Cardew | +44 207 930 0777 +44 7789 998 020 |
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Notes to editors
Lonmin, which is listed on both the London Stock Exchange and the Johannesburg Stock Exchange, is one of the world's largest primary producers of PGMs. These metals are essential for many industrial applications, especially catalytic converters for internal combustion engine emissions, as well as their widespread use in jewellery.
Lonmin's operations are situated in the Bushveld Igneous Complex in South Africa, where more than 70% of known global PGM resources are found.
The Company seeks to create value for shareholders through mining, refining and marketing PGMs and has a vertically integrated operational structure - from mine to market. Underpinning the operations is the Shared Services function which provides high quality levels of support and infrastructure across the operations.
For further information, please visit our website: http://www.lonmin.com