JSE-listed platinum group metals (PGMs) miner Impala Platinum (Implats) says it is pleased with the recommendation made by the independent board and independent expert PSG Capital to midtier PGMs miner Royal Bafokeng Platinum (RBPlat) shareholders to accept Implats’ mandatory offer for a buyout.

“We are delighted that both the independent expert and the independent board appointed by RBPlat have endorsed our offer and agreed that the offer is fair and reasonable.

“In addition, we note the independent board’s recommendation to shareholders to accept our offer,” said Implats CEO Nico Muller on February 14.

Implats’ offer to acquire all remaining issued ordinary shares from shareholders followed the PGMs miner’s announcement on December 9 last year that it had acquired about 35.31% of RBPlat’s shares in issue.

Under the mandatory offer, RBPlat shareholders were offered R90 in cash and 0.30 of an Implats share for every RBPlat share held.

Mining Weekly reported on February 11 that RBPlat had advised its shareholders to accept the offer, having found it fair and reasonable.

In PSG Capital’s opinion, an exchange ratio above 0.22 after the deduction of the cash amount of R90 for an RBPlat share was fair, since Implats’ offer of 0.30 was above the midpoint and near the top of the independent expert’s range of 0.34.

On November 29 last year, the offer represented a premium of 23% to RBPlat’s closing share price of R121.92 on November 24 and a premium of 80% to the 30-day volume-weighted average price of R83.51 prior to RBPlats and Implats’ joint cautionary announcement on October 27.

“Our offer provides a compelling value proposition for RBPlat shareholders by crystallising inherent equity value at an attractive premium through the receipt of a combination of cash and high quality and liquid Implats scrip.

“We believe the level of ownership we have already achieved is indicative of the broad support for our offer and affirms the strategic rationale and value proposition,” Muller said.

The Implats offer opened for acceptance on January 18 and is expected to close on June 17.