Home » Swiss bank places $130-million bet on mining group led by South African tycoon Neal Froneman

Swiss bank places $130-million bet on mining group led by South African tycoon Neal Froneman

Swiss banking giant UBS Group bolsters stake in Sibanye-Stillwater with $130-million acquisition

by Feyisayo Ajayi
Neal Froneman

Key points:


  • Swiss bank UBS increased its stake in South African mining giant Sibanye-Stillwater to over 7%, a $130-million bet on the company’s future.
  • This comes after UBS sold some shares in May, but their latest purchase signals renewed confidence in Sibanye’s potential.
  • UBS joins JPMorgan in backing Sibanye, potentially boosting the company’s access to capital and investor optimism.

Swiss banking powerhouse UBS Group has increased its interest in Sibanye-Stillwater, acquiring additional shares valued at over $130 million in the Johannesburg-based mining and metals processing conglomerate led by South African tycoon Neal Froneman.

The move, disclosed in a recent filing with the Johannesburg Stock Exchange (JSE), marks a significant increase in UBS’ stake from 3.26 percent to 7.36 percent in Sibanye-Stillwater. This strategic maneuver follows a prior divestment by UBS in mid-May, when it reduced its stake from 5.07 percent to 3.26 percent — valued at R1.87 billion ($103.93 million).

UBS ups Sibanye stake with additional acquisition

UBS’ renewed investment comes amidst recent market shifts and challenges within the mining sector, which have impacted Sibanye-Stillwater’s financial performance and valuation in recent years. The bank’s decision to increase its stake could be interpreted as a strategic realignment, underscoring its confidence in the potential gains and opportunities offered by the mining giant.

Earlier in May, UBS had sold off an $11.8-million stake in Sibanye-Stillwater, prompting speculation about its long-term strategy with the South African company. The latest acquisition not only reverses this divestment but also positions UBS more prominently within Sibanye-Stillwater’s shareholder landscape.

Neal Froneman, instrumental in Sibanye-Stillwater’s recent expansion efforts, holds a 0.3-percent stake in the Johannesburg-based multinational mining and metals processing group. UBS’ increased investment is expected to inject optimism into the mining sector, potentially bolstering Sibanye-Stillwater’s financial outlook and growth prospects.

Major banks boost Sibanye-Stillwater

UBS’ move follows a similar investment by JPMorgan Chase & Co., which secured a 6.32-percent stake in Sibanye-Stillwater with an investment of R3.98 billion ($215.4 million) on May 10. The combined backing of major financial institutions like UBS and JPMorgan is likely to provide Sibanye-Stillwater with improved access to capital for future expansion initiatives.

As Sibanye-Stillwater navigates ongoing market dynamics, UBS’ expanded involvement underscores its confidence in the mining sector’s resilience and long-term prospects. Analysts and market participants are closely watching these developments, anticipating their impact on Sibanye-Stillwater’s trajectory and the broader mining industry.

You may also like

logo

The world’s premier source of news on Africa’s billionaires and UHNWIs.

Newsletter

Get the daily email to stay informed about African billionaires and UHNWIs. Get informed and entertained, for free.

Latest News

@2024 – Billionaires.Africa. All Rights Reserved.