The move comes after Implats had acquired around 70.9 million shares, which represent a stake of nearly 24.5% of RBPlat
RBPlat is a South African producer of platinum group metals. (Credit: Royal Bafokeng Platinum)
Impala Platinum (Implats) has offered to acquire a majority stake in South African platinum group metals (PGM) producer Royal Bafokeng Platinum (RBPlat) at a price of ZAR150 ($9.3) per share.
The move comes after Implats had recently acquired 70.9 million shares, which represent a stake of around 24.5% of RBPlat, from the latter’s institutional shareholders.
Implats’ offer is made up of a cash component of ZAR90 ($5.58) and 0.3 of its ordinary shares valued at ZAR60 ($3.72) for each of the RBPlat’s shares.
RBPlat’s mining and concentrating operations are said to be contiguous to Implats’ Impala Rustenburg portfolio located on the Western Limb of the Bushveld Igneous Complex in South Africa.
Its operations, which are all located in South Africa, include the Bafokeng Rasimone platinum mine (BRPM), the BRPM concentrator complex, the Styldrift mine, and the Maseve mine and concentrator plant.
Implats CEO Nico Muller said: “Implats’ offer to acquire a majority stake in RBPlat offers compelling strategic, operational and financial benefits for all stakeholders.
“It presents an opportunity to create a sizeable and sustainable Western Limb production base capable of capitalising on significant, unique synergies available as a result of the contiguous nature of Impala Rustenburg and RBPlat’s operating assets.”
Earlier this month, Northam Platinum had purchased a stake of 32.8% in RBPlat for ZAR17bn ($1.05bn). Northam Platinum’s acquisition of the stake took place amid Implats’ announcement of engaging with RBPlat regarding a potential takeover.
RBPlat said that it has formed an independent board to assess and consider Implats’ offer. Its board is yet to take a stand on the offer but has agreed to facilitate it in the interest of shareholders as well as potential value creation.
Implats stated that its offer enables RBPlat shareholders to gain exposure to a global PGM portfolio that consists of operating assets, projects, and a toll refining business.
RBPlat CEO Steve Phiri said “We will continue to engage as appropriate with all bona fide parties in the pursuit of creating value for all our stakeholders. Implats’ offer and the recent acquisition of RBPlat shares by Northam are testament to the value inherent in this business and to the hard work that our teams have put in.
“We will continue to engage with all shareholders as we ultimately pursue the delivery of value.”