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Afplats concedes takeover target status Posted: Tue, 03 Oct 2006 [miningmx.com] -- AFRICAN Platinum (Afplats) has acknowledged it could become a takeover target after outlining plans to develop a R2.3bn platinum mine in South Africa's Bushveld Complex. Speaking at the Nedsec mid-cap conference last week, Pitchford said a takeover was “always a possibility”. “Every junior hopes a major will look at them. It’s always a possibility. When I developed Zimplats, I wanted it to be the fourth or fifth largest platinum producer in the world. “We made some progress, but then Impala [Platinum] made an offer and the shareholders said: ‘Pitchford, you’d better look at this’,” said Pitchford. “Like any other junior, we could be the subject of an approach,” he said. Pitchford was CEO of Australian-listed Zimplats when in July 2003 its board recommended shareholders accept a A$4.08 per share cash offer by Impala Platinum. Pitchford resigned from Zimplats in March, 2004. Pitchford’s comments were in response to a question by Des Kilalea, an analyst at Nedcor Securities, who observed that Afplats’ had vocal shareholders with their own investment strategy, and a board without a chairman. He suggested whether under these conditions, Afplats was more vulnerable to a takeover. Earlier this year, Afplats non-executive chairman, Charles Hansard was forced to quit from the board after hedge fund, North Sound Capital, which owns 10% of Afplats, called an extraordinary general meeting. At the meeting, North Sound said Hansard was overpaid, inexperienced and ineffective in his role. Another non-executive, independent director, Mark Bristow, also resigned his position at Afplats. Afplats, which hopes to unveil funding for its R2.4bn Leeuwkop project later this year, said it was in no rush to appoint a replacement for Hansard. “We will look at a number of possibilities. We don't have to do anything immediately,” said Pitchford, speaking on the Moneyweb Power Hour.Free news alerts: click here to subscribe
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