Implats concludes BEE transaction in Bafokeng assets

IMPALA Platinum (Implats) on Monday confirmed the conclusion of a black economic empowerment deal as part of its takeover of Royal Bafokeng Resources (RBPlat) last year. The BEE deal is valued at about R9bn.

As laid out in the takeover by Implats previously, the beneficiaries of the transaction will own 13% in both Implats and Impala Bafokeng Resources (IBR) – a subsidiary created by Implats for the purpose of the deal.

The BEE transaction consists of the following components:

  • a 4% community share ownership trust across IBR and Implats
  • A new 4% employee share ownership trust (IBR ESOT), which replaces the previously proposed IBPlat employee share ownership plan
  • A broad-based empowerment consortium, called ‘Bokamoso Consortium’ which will be led by established PGM company, Siyanda Resources. The consortium will hold a 5% shareholding in each of Implats and IBR.

The Bokamoso Consortium will pay R100m for its shares with the balance of the consideration vendor financed through the issue of preference shares. Implats said it hoped to fulfill all conditions precedent for the BEE deal by June 30.

“The transaction demonstrates the group’s confidence in our business, the PGM sector and South Africa,” said Nico Muller, CEO of Implats in a statement.

Implats secured RBPlat last year after an 18-month battle with Northam Platinum. Intended partly to extend the lives of Implats’ Rustenburg mines, as well as supply growth, the deterioration in PGM markets has resulted in the assets turning lossmaking.

“I am very convinced that 30 years from now, when we look back, ‘long’ investors will approve of the value because it makes absolute sense for our company,” said Muller last month when asked to reflect on the deal to buy RBPlat.