Financial Mail and Business Day

How Implats finally landed RBPlat

• Impala Platinum buys 9.26% stake from PIC, bringing its total ownership to 55.46%

Andries Mahlangu and Nico Gous

The Public Investment Corporation is a strategic shareholder in the platinum group metals industry and its decision to sell to Implats affirms the rationale of the deal, which is key to the economic stability of the Rustenburg region, CEO Nico Muller says. Implats now holds 55% of RBPlat.

The Public Investment Corporation (PIC) is a strategic shareholder and key stakeholder in the SA platinum group metals (PGM) industry and its decision to sell to Implats affirms the rationale of the transaction, which is key to the economic stability of the Rustenburg region, CEO Nico Muller says.

Implats now holds 55% of RBPlat, a victory for Muller who had long wanted to secure Implats’ future by beefing up its production profile.

Nitrogen Fund Managers director Rowan Williams said Implats would be able to execute on the plan of extracting value from the investment through synergies and co-operation between the two companies.

“The expanded Implats is now a very significant player in the global PGM space and ensures access to a significant ore base well into the future,” Williams said

For RBPlat, the latest developments potentially bring relief and certainty.

Its assets were fiercely contested in the intervening period by Implats and Northam before the latter pulled out of the race in April.

At the time Northam cited the drop in commodity prices for its decision, but it was also under pressure from some shareholders who argued the strategy was not in their best interest. RBPlat’s assets are largely shallow and mechanised, implying that they are cost competitive.

RBPlat shares closed just under 1% higher at R136 on the JSE while Implats rose 2.20% to R158.38. Northam was up 4.5% to R162.32.

All Weather Capital equity analyst Prince Mopai said Implats was more suited to benefit from the transaction because of its proximity to RBPlat unlike Northam, which had “no visible synergies”.

The news comes as prices of PGMs, which are mainly used to curb harmful emissions in internal combustion engines, as well as making jewellery, have dropped off historic highs reached in 2021 when the world was in the clutches of the Covid19 pandemic and a supplydemand imbalance. The global economic outlook has also become uncertain, potentially affecting the demand outlook.

As part of the merger approval conditions, Implats will facilitate enhanced broad-based ownership by implementing an empowerment structure aimed at benefiting both companies and host communities. This will be done through its own subsidiary, Royal Bafokeng Resources (RBR).

A community share ownership trust holding 4% equity interest across both Impala and RBR will be created for the benefit of the host communities of Impala and RBPlat.

An employee share ownership trust holding 4% equity interest in RBPlat’s assets would also be created, subject to the approval of RBPlat employees.

Empowerment partner Siyanda Consortium will acquire a 5% equity interest in both Impala and RBR through a special purpose investment vehicle.

‘THE EXPANDED IMPLATS IS NOW A VERY SIGNIFICANT PLAYER IN THE GLOBAL PLATINUM GROUP METALS SPACE’

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2023-06-01T07:00:00.0000000Z

2023-06-01T07:00:00.0000000Z

https://tisobg.pressreader.com/article/281517935503504

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