South Africa's PIC lifts stake in Lonmin to just under 30%

The Public Investment Corporation of South Africa has upped its stake in beleaguered platinum miner Lonmin to 29.9% from 7% after it purchased shares in the company’s heavily-discounted rights issue.

“The Lonmin board and management thank all shareholders and appreciate the valuable additional support from the PIC and all the other existing and new international shareholders. That support now allows Lonmin to focus on the delivery of its strategy and business plan,” the company said.

Lonmin said on Friday that its rights issue had seen 71% take-up after it received acceptances in respect of 19bn new shares priced at 1p each.

This represents a 94% discount to the share price before the pricing announcement.

Lonmin carried out the rights issue in order to stay afloat and press ahead with its debt restructuring as it looks to stay afloat amid declining platinum prices and rising costs.

The PIC manages South African government employee retirement funds.

At 0900 GMT, Lonmin shares were down 1.3% to 0.98p.