Kermas had made an irrevocable offer to buy PGR 17 with effect from September 1, of which Metmar owned 21%.

The company owned 56,22% of Mogale Alloys, which produces chrome-nickel alloys, charge-chrome and silico-manganese.

JSE-listed Metmar said that it would invest the sale's proceeds in a money market account, and that its board would decide in "due course" on what to do with the cash thereafter.

The deal was subject to the successful lodging of financial guarantees by Kermas within seven days of acceptance of the offer, the fulfilment of competition authorities approval and other conditions.

Metmar said in stock exchange announcement that the R390-million figure was subject to financial audits and a profit-formula based on a price-to-earnings ratio.

Kermas would settle the amount in stages, beginning two business days after the conditions precedent had been met, with the final payment to occur within 30 days of the completion of the audit of Mogale.

Metmar rose 16,67% to trade at R7 a share at 15:40, after having climbed as high as R8 a share.

Kermas owns the world's second-biggest ferrochrome producer, Samancor Chrome, which it bought from BHP Billiton.

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