Midtier platinum group metals (PGMs) miner Royal Bafokeng Platinum (RBPlat) has recommended that its shareholders accept JSE-listed PGMs miner Impala Platinum’s (Implats’) mandatory offer to acquire their shares in RBPlat.

The offer, which was converted from a general offer to a mandatory offer, follows Implats’ announcement on December 9 last year that it had acquired about 35.31% of RBPlat’s shares in issue.

Implats offered RBPlat shareholders R90 in cash and 0.3 of an Implats share for every RBPlat share held.

On January 17, Implats CEO Nico Muller said the proposed acquisition of additional RBPlat shares would provide a structure that offered “compelling strategic, operational and financial benefits for all Implats and RBPlat stakeholders.”

In line with regulations, RBPlat constituted an independent board to consider the mandatory offer and to provide RBPlat shareholders with the board’s opinion.

After receiving the opinion from independent expert PSG Capital, and after considering of the offer, the transaction rationale and the fact that there was no competing offer on the table, the board shared its view that the mandatory offer consideration was fair and reasonable.

“Our role at RBPlat is to ensure that we continue to deliver value to shareholders. . . this has meant that we keep our eye on the ball as it relates to running our operations efficiently and safely while the independent board has focused on the transaction. 

“The fairness opinion and the recommendation of the board provides our shareholders with the comfort that Implats has put on the table a fair offer for their consideration,” RBPlat CEO Steve Phiri said in a statement on February 11.

RBPlat noted that there were no material developments with respect to the possible trigger of a mandatory offer by PGMs miner Northam Platinum.

In December last year, RBPlat said it had received an unsolicited approach from Northam regarding its interest in acquiring RBPlat’s voting securities.

RBPlat said its independent board would deliberate on the approach and that the matter was still being investigated.

The implementation of the Implats offer, which closes on June 17, remains subject to the fulfilment or waiver of conditions precedent up until May 30. Thereafter, it becomes wholly unconditional.