Shares of Sibanye-Stillwater (SBGL, Financial) are expected to jump on the New York Stock Exchange on the heels of an announcement that a prominent European investment company has acquired a 5.4% interest stake in the company.
Exor Investments now holds a 5.4% stake in Sibanye-Stillwater. Exor is a subsidary of EXOR N.V., whose top shareholder is Giovanni Agnelli B.V.
Exor has made an acquisition of a volume of 29,299,829 American Depository Shares. That computes to four Sibanye-Stillwater ordinary shares for each ADS.
Exor N.V. is a leading investment company in Europe with an investment history of over a century. Exor N.V. has a net asset value of more than $17 billion, which is invested in various European and U.S. sectors.
Exor N.V. only focuses on a scant number of international companies. Exor seeks out those companies that possess a competitive position, a history of steady earnings, cash flow generation and a strong balance sheet. Exor is also interested in investing in best in class or close to international entities whose managers think and act as holders. The investments are made only in those companies in which the Agnelli Family can actively participate and develop.
Therefore, Exor Investments’ acquisition of Sibanye-Stillwater should trigger a stock appreciation.
In Tuesday morning trading, Sibanye-Stillwater was at $4.05 a share, down almost 1.8%. The stock has lost 44% for the 52-weeks through March 13 and underperformed the Van Eck Vectors Gold Miners by about 45%.
Other indicators on Sibanye-Stillwater:
- Market capitalization is $2.24 billion.
- The stock is slightly below the 100 and 50-SMA lines and plainly underneath the 200-SMA line.
- The Relative Strength Indicator (RSI 14-days) is 42.86 of a 30 to 70 range.
- The price-book (P/B) ratio is 1.08 times versus an industry median of 2.06 times.
- The EV-to-Ebitda ratio is 38.27 versus an industry median of 9.90 times.
- The Ebitda margin (ttm) is 2.82% versus an industry average of 24.9%.
- The recommendation rating is 3 out of 5. This is the result of 2 buys and 1 hold recommendation.
- One analyst assigned a price target of $5.25 per ADS of Sibanye-Stillwater.
According to GuruFocus, Sibanye-Stillwater has 2.17 billion ordinary shares outstanding. Of the total amount, 14.02% portion refers to the institutional ownership.
Among the top institutional holders of Sibanye-Stillwater (SBGL, Financial), the Van Eck Associates Corp. is its top owner with a 10.73% interest stake in the South African gold mining company, as of Dec. 31.
(Disclosure: I have no positions in any security mentioned in this article.)
