Impala Platinum (Implats) has agreed to support employment, small businesses and localisation if it manages to take over Royal Bafokeng Platinum (RBPlat).
Implats announced yesterday that it had concluded a framework agreement with the Department of Trade, Industry and Competition on public interest benefits that relates to its proposed acquisition of a majority shareholding in RBPlat.
The Competition Tribunal is currently sussing out the deal.
On November 29, 2021, Implats, a platinum group metals (PGM) producer, announced its general offer, in cash and shares, to acquire a majority shareholding in RBPlat. The offer comprises a cash amount of R90 and 0.30 ordinary shares in Implats.
The terms of the deal are subject to Implats obtaining a controlling 50 percent+1 shareholding in RBPlat and relate to primarily employment, support for small, medium and micro Enterprises, and localisation.
However, although Implats has passed another hurdle, the battle for RBPlat is not a given as Northam owns a major stake and also wants to own the miner.
Implats and Northam hold 37.83 percent and 34.52 percent in RBPlat, respectively. The government-owned Public Investment Corporation (PIC), which has just more than 9 percent in RBPlat, has not indicated yet if it will accept Implats’ offer. Northam Platinum is the sole party objecting to the proposed transaction before the Competition Tribunal.
Implats chief executive Nico Muller, said yesterday: “Through robust and lengthy engagements with our key partners in government, labour, and our communities, we have secured overwhelming support for the transaction.”
The successful conclusion of this framework agreement was a further endorsement of the proposed transaction by a key stakeholder and affirms the significant public interest benefit that flowed from it, Implats said. It follows support from the RBPlat board, organised labour and local communities, our institutional shareholders, and the positive recommendation of the Competition Commission.
Muller said the group had maintained regular engagement with relevant government ministries, remaining RBPlat shareholders and other key stakeholders to outline and explain Implats approach to and rationale for the acquisition and was vigorously pursuing regulatory approval, despite a series of legal challenges.
The proposed acquisition provides compelling strategic, operational, and financial benefits for all Implats and RBPlat stakeholders, the group said, adding that it secured a Western Limb production base that enhanced the region’s position as the current most significant source of global primary PGM production.
According to the group, the proposed transaction will deliver significant and tangible socio-economic benefits for the Rustenburg region, its communities, and South Africa.
“This includes extended employment security for more than 40 000 people and sustained economic support for the more than 450 000 people who benefit from Impala Rustenburg’s and RBPlat’s mining activities and social contributions in the greater-Rustenburg region,” it said.
The closing date on the Implats offer was extended to September 16.
Northam declined to comment at this stage.
Anchor Capitol investment analyst Seleho Tsatsi said: “The Competition Commission also recognised public benefit interests that would stem from the take-over after its investigation. At this stage, Northam Platinum still holds a large stake in RBPlat, and we haven't reached the end of this story,” he said.
Implats shares were up 0.44 percent in late trade at R179.86 as RBPlat shares traded 0.33 percent lower at R145.52.
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