- Sibanye Stillwater faces court ruling to pay damages after canceling a 1.2 billion deal for Brazilian nickel and copper mines.
- Investment firm Appian Capital sought compensation, asserting Sibanye had no legitimate grounds for terminating the acquisition agreement.
- Sibanye reported a R7.14 billion 379 million loss in H1 2024, contrasting sharply with a R7.8 billion 427 million profit.
Sibanye Stillwater, a multinational precious metal mining company led by South African executive Neal Froneman, has been ruled liable by the London High Court to compensate investment firm Appian Capital Advisory over the termination of a 1.2 billion deal.
The court's decision comes on the heels of Sibanyes failed acquisition of Brazilian nickel and copper mines, specifically the Santa Rita and Serrote assets.
Appian revealed that the court found Sibanye obligated to finalize the deal, which entailed acquiring a 100 percent stake in the Santa Rita nickel mine and the Serrote copper mine in Brazil. Sibanye initially expressed its intent to complete the acquisition by the end of 2021 , with a definitive purchase agreement announced on Oct. 26, 2021, for 1 billion in cash.
Dispute over terminationThe transaction unraveled in Jan. 2022 when Sibanye terminated the agreement, prompting Appian to seek compensation. Judge Christopher Butcher presided over the case and ruled that Sibanye had no legitimate grounds for canceling the acquisition, thereby obligating the company to compensate Appian. A separate hearing to determine the damages is set for Nov. 2025.
Appian, an investment advisor specializing in metals and mining, is pursuing full recovery of its losses, including accrued interest, resulting from the failed deal. In a response, Sibanye acknowledged the trial date but declined to comment on potential compensation amounts.
