IMPALA Platinum (Implats) today published a circular to shareholders in Royal Bafokeng Platinum (RBPlat) providing details of its takeover offer unveiled last year.
As of mid-December Implats had built a stake in RBPlats of about 35% which made this month’s offer mandatory. Implats has offered R90 per share in cash and 0.3 Impala shares per RBPlat share. RBPlat is currently trading at R163.77 per share valuing the company at R47.3bn.
Implats’ offer compares to a rival bid from Northam Platinum which on November 9 bought a 32.8% stake in RBPlat for about R180/share worth about R17bn in total. As part of Northam’s share acquisition it also negotiated a put and call option agreement with Royal Bafokeng Holdings (RBH) and one of RBH’s subsidiaries that would see it inch up its stake to 36.1%.
The move surprised Implats which had previously announced its intention for a takeover of RBPlat. Analysts have said Implats is the more natural bidder for RBPlat because they have mines bordering one another on the eastern side of the Bushveld Complex – the geological occurrence where most of South Africa’s platinum group metals are located.
In terms of the circular issued today, Implats said it expected a response from RBPlat around February 14. The offer then becomes wholly unconditional on May 30. The offer closes on June 17.
The circular also sets down the required conditions precedent including approvals from such  bodies as the Competition Commission.
