JOHANNESBURG Platinum miner Lonmin Plc (LMI.L) (LONJ.J) will price its $800 million rights issue at around a 45 percent discount on Friday, according to three people familiar with the matter, representing the top of its expected range.
Xstrata Plc XTA.L has not yet decided whether it will take up rights in the Lonmin issue, said the people, all of whom declined to be identified because the information is not yet public.
Lonmin will offer the shares at a 45 percent discount to their theoretical ex-rights price, or TERP, said two of the people. TERP is the market price a stock theoretically has after a new rights issue.
Other people familiar with the matter had earlier told Reuters the range was likely to be between 35 and 45 percent.
Lonmin is looking to raise the money to help cut debt and finance its recovery after six weeks of deadly strikes at its platinum mines in South Africa.