JOHANNESBURG (miningweekly.com) – Mvelaphanda Resources’ share price dropped sharply on Thursday morning, after Impala Platinum (Implats) said late on Wednesday that the global market turmoil had complicated its bid for the company and Northam Platinum.

The JSE-listed Mvela’s share price fell by more than 12% to trade at R20,20 a share by 10:00 – its lowest level in almost three years.

The share price of Northam, which is 63% owned by Mvela, fell by 18,7% to R23,15 a share after the market opened. By 10:00, Northam’s share price recovered, and traded at R24,20 a share.

World number-two platinum-miner Implats said on Wednesday that it could not proceed with its bid for Mvela and Northam, announced in early October, on the basis of an exchange ratio of 35 of its shares for every 100 Northam shares, given the current market environment.

However, it assured the market that it was still interested in pursuing a transaction with the two smaller companies.

RBC Capital Markets commented that it was unlikely that the new offer would be 20% below the first offer.

Through the R21,2-billion cash-and-share bid for Mvela and Northam, Implats aims to create a new platinum giant, and get its hands on Northam’s lucrative Booysendal project, which it bought with Mvela’s help earlier this year, from Anglo Platinum.

Implats share price was trading 6% lower at R110 a share in early morning trade.

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