Impala Platinum (Implats), a JSE-listed platinum group metals (PGM) miner, on January 17 issued an offering circular to shareholders of mid-tier PGM miner Royal Bafokeng Platinum (RBPlat) offering to acquire all the RBPlat shares that he does not already own.
As of January 7, she held 102.05 million RBPlat shares, representing approximately 35.31% of the shares outstanding.
Implats offers RBPlat shareholders R90 in cash and 0.3 Implats share for each RBPlat share held.
CEO of Implats Nico Muller states that the proposed acquisition of additional RBPlat shares will provide a structure that offers “compelling strategic, operational and financial benefits for all Implats and RBPlat stakeholders [as] it secures a western branch of the Bushveld Complex production base that strengthens and reinforces the region’s position as the world’s largest source of primary PGM production.
He adds that the acquisition will also bring “tangible” socio-economic benefits to the region, its communities and South Africa as a whole, including job security and lasting co-benefits for the greater region. from Rustenburg.
In a statement, Implats says the offer offers a “compelling” value proposition to RBPlat shareholders by “crystallizing intrinsic equity value at an attractive premium” through receipt of a combination of cash and securities. high quality liquids in Implats.
This, in turn, provides exposure to a global portfolio of PGM assets, projects and a refining business, which Implats believes is well positioned to leverage the full PGM value chain through integrated processing facilities, including wholly-owned smelters, as well as base and precious metals refineries.
It also provides an opportunity to benefit from regionally diversified production growth in shallow, mechanized operations on the Eastern Branch of the Bushveld Complex, Canada and Zimbabwe and the planned expansion of installed processing capacity.
Implats further adds that the offering is “best positioned” to deliver the future operational benefits of the significant and unique regional synergies presented by these contiguous operations. This is due to Implats’ comprehensive experience of the ore body and ability to capitalize on profitable opportunities for future growth, he says.
In addition, the offering offers an “attractive and sustainable” dividend yield, supported by clear and disciplined capital allocation priorities and a strong and flexible balance sheet.
“Our value strategy is to increase exposure to low cost, shallow and mechanized assets; strengthen the positioning of the Implats group with a quality portfolio of operations with high added value, sustainable and competitive throughout the cycle,” says Muller.
He adds that the level of ownership of RBPlats achieved by Implats to date is indicative of the broad support it has received and confirms the strategic rationale and value proposition provided by this acquisition.
The offer will be open for acceptance from 09:00 a.m. on January 17 to 12:00 p.m. on June 17.
Implats and fellow PGM miner Northam Platinum both played for RBPlat.
In November last year, RBPlat shareholder Royal Bafokeng Holdings accepted an unsolicited offer for up to a third of RBPlat’s shares in a R17 billion deal.
In addition, RBPlat announced in December that it had received an unsolicited approach from Northam regarding its interest in acquiring all or a portion of the voting securities of RBPlat. At the time, RBPlat said its independent board would deliberate the approach.