Robbins Arroyo LLP: Acquisition of Stillwater Mining Company (SWC) by Sibayne Gold Ltd. (SGL) May Not Be in Shareholders' Bes...
December 09 2016 - 3:24PM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Stillwater Mining Company
(NYSE: SWC) by Sibayne Gold Ltd. (Johannesburg: SGL; NYSE: SBGL).
On December 9, 2016, the two companies announced the signing of a
definitive merger agreement pursuant to which Sibayne Gold will
acquire Stillwater. Under the terms of the agreement, Stillwater
shareholders will receive $18.00 for each share of Stillwater
common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/stillwater-mining-company
Is the Proposed Acquisition Best for Stillwater and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Stillwater is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $18.00 merger consideration represents
a premium of only 20.40% based on Stillwater's thirty-day average
closing price for the period ending December 8, 2016. This premium
is significantly below the average thirty-day premium of nearly
42.23% for comparable transactions within the past three years.
Further, the $18.00 merger consideration is significantly below the
target price of $21.00 set by an analyst at FBR Capital Markets on
November 2, 2016. In the last three years, Stillwater traded as
high as $19.42 on July 30, 2014, and most recently traded above the
merger consideration – at $18.26 – on September 2, 2014.
On October 28, 2016, Stillwater reported strong earnings results
for its third quarter 2016. Stillwater reported total revenues of
$196.6 million for the three months ended September 30, 2016, a
16.7% increase from the same period of the prior year. Stillwater
has also beaten analyst estimates for revenue in three of the past
four quarters. In commenting on these results, Stillwater President
and Chief Executive Officer Mick McMullen remarked, "The third
quarter 2016 results demonstrate that Stillwater Mining Company
continues to deliver on operational plans and stated objectives.
Our efforts to grow the recycling business have been successful as
we processed 175,000 ounces of recycled PGMs during the third
quarter of 2016, which was a Company record. Mined production and
costs were in-line with our expectations. Based on our year-to-date
results and future outlook, we remain confident in our ability to
achieve the improved full-year guidance targets provided last
quarter."
In light of these facts, Robbins Arroyo LLP is examining
Stillwater's board of directors' decision to sell the company now
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects.
Stillwater shareholders have the option to file a class action
lawsuit to ensure the board of directors obtains the best possible
price for shareholders and the disclosure of material information.
Stillwater shareholders interested in information about their
rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion of value for themselves and
the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20161209005697/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
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