* Set to detail terms of rights issue on Friday
* Lifeline key to cutting debt, financing growth
* Lonmin expected to post pre-tax loss for year
LONDON, Nov 8 (Reuters) – South African miner Lonmin
is set to price its rights issue on Friday to raise up to $800
million from investors to help cut debt and finance its recovery
after six weeks of deadly strikes at its platinum mines.
The company is also due to report its results for the year
ended Sept. 30 but will not yet be able to answer the question
of whether Xstrata, its top shareholder, will sign up to
the rights issue, which is fully underwritten.
Xstrata, which is still in the throes of being taken over by
its own largest shareholder Glencore, is still
considering its position and whether it will invest to maintain
its 25 percent holding in Lonmin which it was left with after a
failed takeover attempt four years ago.
Glencore has little appetite for platinum, sources familiar
with the matter have said, and prices are far off their 2008
peak.
“Nothing has been said yet. (Xstrata) have always played
their cards very close to their chest,” said one source familiar
with the situation.
“Xstrata have got other situations going on in the
background, which may or may not influence their involvement.”
Continued…
