RBPlat recommends shareholders accept takeover offer from Implats

Royal Bafokeng Platinum’s independent board has recommended shareholders accept a buyout offer from peer Impala Platinum that values it at R43bn, saying there aren’t any competing offers, and that it is fair and reasonable.

The tie-up will allow Implats to contend for the status as the world’s largest producer of platinum group metals, and there had been speculation there may be a bidding war with rival Northam Platinum, which also built up a stake in RBPlat in 2021.

Implats has built up a stake of more than 35% in RBPlat, triggering a mandatory bid, with the former offering R90 per share along with 0.3 of its own shares for each of those it acquires.

“As we have consistently said, our role at RBPlat is to ensure that we continue to deliver value to shareholders,” RBPlat CEO Steve Phiri said in a statement.

“The fairness opinion and the recommendation of the board provide our shareholders with the comfort that Implats has put on the table a fair offer for their consideration,” Phiri said.

The fairness opinion was provided by PSG Capital, while RBPlat said that there were no material developments with respect to the possible trigger of a mandatory offer by Northam, and that this investigation is ongoing.

RBPlat said in December it had alerted regulators about the possibility Northam had triggered a need to make a mandatory offer by dealing in its shares, but Northam has said it is firmly of the view that it hadn’t.

Implats’s plan for full control was thrown off course when smaller rival Northam swooped in with an offer of R180 per share, or R17bn, to buy 32.5% of RBPlat.

Implats has said it doesn’t expect Northam to accept its offer, given what it paid for its stake, but it will be happy with a controlling interest in RBPlat.

In afternoon trade on Friday RBPlat’s shares were up 0.8% at R160.06, having risen by almost a third since Implats announced its firm intention to make an offer.

gernetzkyk@businesslive.co.za