Implats acquires 24.5% stake in Royal Bafokeng Platinum, makes offer to buyout the rest

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  • Impala Platinum (Implats) has acquired a 24.5% stake in Royal Bafokeng Platinum
  • The offer comes as a surprise as Implats was thought to be out of the running after Northam Platinum acquired a 32.8% stake in RBPlat.
  • Implats has now offered to buy out the remaining shareholders on the same terms.

Impala Platinum (Implats) has acquired a 24.5% stake in Royal Bafokeng Platinum (RBPlat) for around R10 billion and has now offered to buy out the remaining shareholders on the same terms.

Implats on Monday announced it had acquired the stake from institutional shareholders last week and has now offered the remaining shareholders R150 per RBPlat share - which consists of R90 cash plus 0.3 ordinary shares in Impala.

This, Implats said, represents a premium of 22% to RBPlat’s closing share price of R121.92 on 24 November 2021.  

The offer comes as a surprise as Impala were previously outbid when Northam Platinum made a R17.2 billion offer to acquire 32.8% of RBPlat shares from its parent company, Royal Bafokeng Holdings. On 19 November, Northam announced the acquisition had been implemented.

Industry experts have noted that there are greater synergies to be realised between RBPlat and Implats than with Northam.

Having just closed the deal, Northam is unlikely to take up the Implats offer. 

"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," RBPlat CEO, Steve Phiri, said on Monday.

"We will continue to engage as appropriate with all bona fide parties in the pursuit of creating value for all our stakeholders." 

RBPlat has now constituted an independent board to review and consider the offer made to all shareholders.

"Shareholders will therefore have an opportunity to assess the offer on its merits and make a decision that is aligned to their strategic thinking," the company said in a statement.  

The RBPlat board has appointed PSG Capital as an independent expert to express an opinion on whether the terms and conditions of the Implats offer are fair and reasonable. This will be included in the board’s response to Implats’ circular which is expected to be received by RBPlat shareholders on or before 17 January 2022.

*An earlier version of this article said Impala Platinum had offered Royal Bafokeng Platinum shareholders R43 billion for a 24.5% stake in the company. This is not correct. Fin24 regrets the error.

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