RBPlat's Styldrift mine
Photo by: Creamer Media
Northam Platinum has terminated its offer to buy Royal Bafokeng Platinum (RBPlat) citing low prices of platinum group metals (PGM) as it ended a year-long takeover battle with bigger rival Impala Platinum.
Northam had outbid Impala's initial offer to acquire RBPlat, but on Wednesday said that PGM prices had fallen to levels amounting to a "material adverse change" that proved fatal to its offer.
"Northam Holdings hereby notifies RBPlat shareholders that the offer is terminated with immediate effect," it said.
The miner said that the rhodium closing price has remained below $9 000/oz for 12 consecutive trading days, while the basket price for four PGMs had fallen below R33 000 ($1 830.91) an ounce for ten consecutive trading days.
Northam's decision to end its pursuit of RBPlat clears the path for Impala, the world's second-biggest PGM producer, to strengthen its hold on a miner with high-grade assets that made it an attractive takeover target.
Impala and Northam have built holdings in RBPlat of 40.71% and 34.52% respectively during the takeover battle.
Northam did not say whether it would retain its stake or sell to Impala, but Northam CE Paul Dunne told analysts on March 24 that his company could consider jointly running RBPlat with Impala.