JSE-listed Impala Platinum (Implats) has reported that the Competition Commission has recommended that the Competition Tribunal approve the company’s proposed acquisition of all JSE-listed Royal Bafokeng Platinum (RBPlat) shares not already owned by it.

The recommendation was subject to certain conditions relating to public interest considerations, which had largely been agreed upon between Implats and the commission.

“This is an important milestone in the proposed transaction and supports the overall rationale of our offer. Throughout this process, we have worked closely and transparently with our key partners in government, labour and our communities.

“Through extensive engagements we have sought to ensure understanding and support for the transaction and its potential for long-term shared value creation that will benefit all stakeholders,” said Implats CEO Nico Muller.

The parties to the deal have been engaging with Trade, Industry and Competition Minister Ebrahim Patel and will continue to do so in relation to the public interest considerations arising from the proposed transaction, Implats said.

The company said the conditions pertaining to public interest aligned its own stakeholder engagement approach and its vision of being a valued and responsible metals producer, creating a better future for its stakeholders.

BACKGROUND

On November 29 last year, Implats announced its offer, in cash and shares, to acquire a majority shareholding in RBPlat. The offer amounted to R150 a share and comprised a cash amount of R90 and 0.3 ordinary Implats shares for every RBPlat share held.

In February, both the independent expert and the independent board appointed by RBPlat endorsed the Implats offer, agreed it was fair and reasonable, and recommended that RBPlat shareholders accept the Implats offer.

Implats has now concluded purchase agreements for more than 109-million shares in RBPlat.

In aggregate, Implats currently holds about 37.62% of RBPlat shares – a level of ownership which Implats said underlined the broad support received for the offer by RBPlat shareholders and which affirmed both its strategic rationale and value.

“We remain fully committed to realising the compelling strategic, operational and financial benefits that will flow from the combination of these two . . . companies.

“The proposed transaction will deliver tangible socioeconomic benefits for the greater-Rustenburg region, including our respective communities, and South Africa as a whole, specifically in terms of employment security and numerous sustained indirect benefits,” Muller said.