Business Maverick

Business Maverick

Implats Renews RBPlat Bid, Valuing Miner at $2.7 Billion

The acquisition of Royal Bafokeng Platinum by Implats would be the next major consolidation step in South Africa’s PGM sector after Sibanye swallowed the ailing Lonmin. (Photo: Waldo Swiegers / Bloomberg via Getty Images)
By Bloomberg
30 Nov 2021 0

Impala Platinum Holdings Ltd. revived its pursuit of Royal Bafokeng Platinum Ltd., seeking control of the smaller South African miner in an escalating battle with Northam Platinum Holdings Ltd.  

Implats, as the miner is known, offered 150 rand in cash and shares to RBPlat shareholders, valuing the company at about 43.4 billion rand ($2.7 billion). That comes after Northam Platinum Holdings Ltd. earlier this month agreed to pay 180 rand a share for a 32.8% stake in RBPlat, thwarting Implats’ initial approach.Implats has long wanted to own Royal Bafokeng’s low-cost mechanized assets, which are key to prolonging the life of its own deep-level operations in the adjacent Rustenburg mining complex. While Northam swooped to buy out RBPlat’s biggest shareholder, Implats Chief Executive Officer Nico Muller is still determined to gain majority control.“Our ambition is to develop to a control position,” the CEO said on a call Monday, after Implats already built a 24.5% stake in RBPlat. “We see the shareholder support that we got already as a proxy of potential support that we can expect going forward.”

Read: King Sinks Impala Plan to Create World’s No. 1 Platinum Firm

Implats said Abax Investments, Allan Gray Ltd., Coronation Asset Management Ltd., MandG Investment Managers and Ninety One SA Ltd. have already sold their shares to the company. RBPlat surged 14% to 138.33 rand as of 1:28 p.m. in Johannesburg.

Implats said its offer — a 24% premium to RBPlat’s closing price on Nov. 26 — provided “compelling value” for shareholders. The offer will open in mid-January for 30 days, and could be extended for another 15 days, said Kirthanya Pillay, the company’s group executive for corporate development.

Muller said Northam was unlikely to follow up with a general offer immediately, following its purchase of the stake owned by Royal Bafokeng Holdings — the investment arm of the Bafokeng nation that’s led by King Kgosi Leruo Molotlegi and his advisers.

“There is a clear indication 180 rand a share it offered to RBH is probably not repeatable,” said Muller, adding that he doesn’t expect Northam to sell its stake. The CEO said having Northam as a shareholder in RBPlat is an advantage because of the company’s “strong operational track record.”

Leon Van Schalkwyk, a spokesman for Northam, didn’t immediately respond to calls seeking comment. Northam’s audacious bid for the RBH shares reflected the growth ambitions of CEO Paul Dunne. Northam has an option to raise its stake in RBPlat to 36%, and earlier this month said that holding could provide a platform for a possible combination of the two miners in the medium term.

RBPlat said in a separate statement it has appointed PSG Capital Ltd. as an independent expert to assess the Implats offer.

Gallery

Comments - share your knowledge and experience

Please note you must be a Maverick Insider to comment. Sign up here or sign in if you are already an Insider.

Everybody has an opinion but not everyone has the knowledge and the experience to contribute meaningfully to a discussion. That’s what we want from our members. Help us learn with your expertise and insights on articles that we publish. We encourage different, respectful viewpoints to further our understanding of the world. View our comments policy here.

No Comments, yet