Implats in the final stretch of RBPlat takeover

Following the Competition Tribunal’s approval of a proposed merger between platinum miners Impala Platinum (Implats) and Royal Bafokeng Platinum (RBPlat), the only remaining condition outstanding to Implats’ buyout of RBPlat is a compliance certificate to be issued by the Takeover Regulation Panel (TRP).

The tribunal on November 16 announced that it had approved of the transaction, but with conditions.

Implats made an offer to buy out all outstanding shares it does not own in RBPlat for R150 apiece. Implats’ current stake in RBPlat stands at 40.66%.

Implats has once again extended the long-stop date for the fulfilment of the remaining conditions to December 30.

Fellow miner Northam Platinum, with a current ownership of 35% in RBPlat, also intends to buy out the company.

While the TRP is contemplating the compliance certificate issuance to Implats, it is also investigating a complaint lodged by Northam, in which the company claims that an unlawful share issuance and contractual agreements occurred between RBPlat and its COO and CEO earlier this year.

Although RBPlat disputed this and the complaint was dismissed by the TRP, Northam appealed the TRP’s decision to the Takeover Special Committee, which found that the share issuance did indeed contravene the Companies Act and ordered that the TRP investigate Northam’s complaint in its entirety under Section 169 of the Companies Act as soon as possible.

In turn, RBPlat is engaging with its advisers regarding its next steps.

Meanwhile, following Northam making a buyout offer of R172 a share earlier in November, the company has advised that it has waived the material contract conditions related to its offer. Northam initially said its offer is conditional upon the fulfilment or waiver of certain conditions precedent, including obtaining, to the extent required, the written unconditional consent or waiver from the relevant counterparties to any material contracts to which the Northam Group is a party.

Northam has told shareholders that Northam that the implementation of the offer and the additional acquisitions is no longer subject to the material contract conditions.

"Implementation of the offer and the additional acquisitions remains subject to the fulfilment or waiver of the remaining offer conditions and additional acquisition conditions, respectively," the company states.