Africa’s biggest bank said Lonmin investors should reject Sibanye-Stillwater’s takeover offer as it undervalues the platinum miner’s assets by as much as R6.64-billion. While Sibanye’s offer equates to R11.60 a share, Lonmin’s value at current metal prices is 45% higher, Leroy Mnguni, an analyst at SBG Securities, a unit of Standard Bank Group, said in a note to clients. If assets such as the platinum producer’s suspended K4 project, spare processing capacity and a concentrator are factored in, Lonmin is worth about R35 a share, he said.
