Photo by: Creamer Media
Following the conclusion of its latest round of share acquisitions, platinum group metals (PGMs) producer Impala Platinum (Implats) will finally be a majority shareholder of Royal Bafokeng Platinum (RBPlat), which will now become an Implats subsidiary.
This comes as Implats announced on May 31 that it had concluded an agreement with the Public Investment Corporation (PIC) to acquire another 9.6% of RBPlat's shares – about 26.9-million shares – along with an additional 890 285 RBPlat shares, constituting another 0.31% of the company’s shareholding – taking Implats’ total ownership of RBPlat shares to an aggregate of about 55.46%.
In a statement, the PIC said it believed the Implats offer would deliver financial value to its clients and ensure the long-term sustainability of PGMs mining in the greater Rustenburg region.
“In addition, this transaction is envisaged to have a positive impact on regional employment, as well as enable Implats to deliver on its social commitments,” the entity said.
EMPOWERMENT BOOST
Implats further announced on May 31 that it intends to facilitate increased broad-based black economic empowerment ownership in the PGMs sector through the implementation of an empowerment ownership structure at both Implats and RBPlat, through its wholly-owned subsidiary Royal Bafokeng Resources (RBR), which houses RBPlat’s operations.
The proposed empowerment transaction includes commitments made in relation to the creation of a community share ownership trust holding a 4% equity interest across both companies for the benefit of the host communities, as well as the option to replace the RBPlat employee share ownership plan, which is a 3% profit participation scheme, with an employee share ownership trust holding a 4% equity interest at RBPlat’s operations through RBR.
In addition, Implats has partnered with Siyanda Resources, which will lead a broad-based empowerment consortium as part of the proposed empowerment transaction, wherein Siyanda will acquire a 5% equity interest in both Implats and RBR through a special purpose investment vehicle.
In addition, about 3% of shares in Implats and RBR are intended to be held for entrepreneurs, with a focus on women and youth entrepreneurs, from the Rustenburg community.
In light of these developments, Implats has advised that the longstop date set for fulfilment or waiver of the conditions precedent, and the closing date of the RBPlat offer, has been extended to June 28.