Royal Bafokeng discards Implats takeover, goes for Northam deal
In a rebuff to Impala Platinum (Implats), which announced last month that it wanted to buy Royal Bafokeng Platinum (RBPlat), Royal Bafokeng Holdings (RBH) announced a deal with Northam Platinum instead.
In a transaction valued at R17.2 billion, Northam will buy up to 33.3% of RBH’s stake in RBPlat. RBH currently holds 36.1% of the platinum producer.
The transaction will be funded by a mix of cash (R8.6 billion) and shares, which will result in RBH holding 8.7% in Northam.
The deal will help Implats exploit synergies from deposits adjacent to its extensive Rustenburg mining complex. The amalgamated company will produce 3.45 million ounces a year, overtaking Sibanye Stillwater and Anglo American Platinum in terms of output and rivalling Russia’s giant Norilsk Nickel.