The increase in loan amount obviously reduces the additional funding required by both parties which I see as an additional derisk.
Sibanye negotiated this deal sometime ago with no guarantees, if it was negotiated today with approvals and a Billion dollar loan on the table I would suggest it would be a lot more.
If Sibanye walk we could well negotiate a better deal quite quickly as I think Bernard may well have factored in a plan B, that deal could be a 100 million more and still be a great deal for a prospective buyer.
Hopefully things move quickly now as surely everything has been in place waiting for this decision and that last red flag turns green.
INR Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
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