A small group of private institutional investors has bought 5.4 million unregistered shares of Stillwater Mining (NASDAQ) from its parent company, Manville (NYSE).
The privately negotiated placement, which represents 27% of the common stock, was the last step in rendering the platinum and palladium producer a public company.
In 1994, Stillwater began its quest for independence when it bought out Chevron’s 50% interest and sought to raise money through an initial public offering. After the offering, Manville’s interest was diluted to 27%.
The 5.4 million shares were valued at US$20.50 per share, or a total of US$110.4 million. Manville stands to reap a US$45-million after-tax gain, or 36 cents per share in the third quarter.
Manville has retained a 5% net smelter royalty on certain claims at the Stillwater mine in southern Montana.
Stillwater has big plans for its operations in the future. It has launched a major expansion program which should double production by mid-1997. A second mine, still on the drawing board, could have the effect of doubling production yet again, by the year 2000.
Be the first to comment on "Manville sells interest in Stillwater for US$110 million"