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UPDATE 1-Sibanye shareholders approve revised $286 mln Lonmin takeover

Tanisha Heiberg

(Adds detail, share price)

JOHANNESBURG, May 28 (Reuters) - Sibanye-Stillwater shareholders approved a takeover of Lonmin to create the world's second-largest platinum producer, boosting shares in both firms on Tuesday.

Sibanye said that 87 percent of its shareholders backed the all-share offer, which it revised last month to value the struggling miner at 226 million pounds ($286 million), 60 million pounds less than originally proposed.

Shareholders in Lonmin are also due to vote on the Sibanye takeover at a meeting in London on Tuesday.

Lonmin was hit hard by the drop in platinum prices and has had to cut spending in order to retain a positive balance sheet, a condition of Sibanye's proposed offer.

Shares in London-listed Lonmin rose 6.77 percent by 0925 GMT, while Sibanye's were up 7 percent. ($1 = 0.7892 pounds) (Reporting by Tanisha Heiberg and Barbara Lewis; Editing by Mark Potter and Alexander Smith)