Impala Platinum (Implats), the world’s third-biggest platinum miner, has increased its shareholding in Royal Bafokeng Platinum (RBPlat) to 35.23% upping the ante in its ongoing dice with smaller rival Northam for stakes in the company.
Implats has been pursuing its neighbour RBPlat for more than a decade, seeing an opportunity to own low-cost, mechanised shafts, and to extend the life of its own ageing deep-level operations in Rustenburg.
It announced talks on purchasing a stake in RBPlat on October 26, but days later smaller rival Northam scuppered its plans by buying a 32.5% stake in the target group from its then largest shareholder Royal Bafokeng Holdings — offering a R180.50 a share, up from Implats’s proposed R150. Northam then became the largest shareholder in the company but was eclipsed by Implats on Friday.
Implats was able to build up a 24.5% stake in RBPlat in November by buying stakes from minority shareholders including Coronation Asset Managers, Abax Investment, Allan Gray and Ninety One.
Implats had increased its stake to 32.26% by early December by buying shares owned by Allan Gray.
On Friday, it further increased its holdings by buying a small portion of the Public Investment Corporation’s (PIC) stake in RBPlat. The PIC now owns 9.69% of the miner, down from 11.4%.
The remaining stake of the PIC in RBPlat could be central to either side as they try to build up a majority stake of at least 51%.
Implats has made an offer to buy the whole of RBPlat and Northam has made an expression of interest, which could result in a potential offer for all of RbPlat.
Northam has the support of the National Union of Mineworkers but shares fewer synergies with RBPlat.
As the rivals own more than 25% of RBPlat, they can use their vote to block the other from gaining 100% control.
The bidding war has driven up RBPlat’s share price even as the price of platinum and palladium have dropped this year due to delays in car manufacturing, which uses platinum group metals in their pollution-reducing catalytic converters.
RBPlat’s shares first soared in the wake of the expression of interest from Implats, but are now up just 6% since October 26, the day before the two parties announced they were in talks.
On Friday, RBPlat’s shares gained 3.89% to R158.19, while Implats was up 3.94% to R219.82 and Northam 2.74% to R201.05. Impala is up 9% so far this year and RBPlat 142%, while Northam has fallen 4%.
With Karl Gernetzky
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