It’s finally Appian! Court case begins over fallout from collapsed $1.2bn deal
Court proceedings for Appian Capital Advisory’s (Appian) $1.2bn (£950m) compensation claim against South Africa’s Sibanye-Stillwater (Sibanye) for the termination of two mine deals have now begun.
The London-based investment firm is seeking compensation after Sibanye pulled out of a deal to acquire two mines in Brazil in January earlier this year.
It has signed agreements last October for the acquisition of the Santa Rita nickel mine and Serrote copper mine from Appian affiliates.
The acquisition of both sites was meant to bolster Sibanye’s battery metals portfolio as the miner seeks to diversify from platinum and gold.
However, Sibanye pulled out citing a geotechnical event at Santa Rita as the reason for terminating the deals.
It argued this had a material and adverse impact on the financial conditions, properties, assets and liabilities of the mine.
In a statement on Monday, Appian said Sibanye’s decision to withdraw from the deal was based on an “incorrect assertion”.
It said: “Appian considers that Sibanye has improperly relied on the event to avoid its legal obligations and that Sibanye wished to terminate the sale and purchase agreements (SPAs) for commercial reasons unrelated to the geotechnical event.”
“Sibanye’s failure to close the transaction and incorrect public statements in relation to the Santa Rita mine have materially damaged the market perception of Atlantic Nickel and Appian. Through these proceedings, the Company is seeking to recover its losses in full.”