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After successfully acquiring a 32.5 percent stake in Royal Bafokeng Platinum (RBPlat), Northam Platinum is now the miner’s largest stakeholder.
The agreement, worth roughly R17.2 billion, includes an option for Northam to buy 0.58 percent more of Royal Bafokeng Holdings’ (RBH) stock in the RBPlat.
RBH on the other hand still has the 0.58%, plus a 2.7% shareholding interest held through Emikaway, one of its subsidiaries. Northam’s share price fell by nearly 2.5% in morning trade, while RBPlat dropped by 0.7%.
Following Implats’ announcement last month that it planned to buy RBPlat, the Northam offer stunned investors and succeeded where Implats had failed.
A proposed partnership with Implats, according to Bloomberg, would allow the miner to take advantage of synergies from deposits near its massive Rustenburg mining complex.
The combined business would have produced 3.45 million ounces of platinum per year, surpassing Sibanye Stillwater and Anglo American Platinum in terms of output and competing with MMC Norilsk Nickel PJSC of Russia.
Royal Bafokeng Platinum and Implats later removed a warning statement they had jointly released on October 27th, noting that RBPlats had been notified by its single largest shareholder at the time, RBH, that it no longer supported the acquisition and would vote against it.
Northam CEO Paul Dunne said earlier in November that its own deal for RBPlat would facilitate a “compelling and complementary synergistic fit between the business operations” with potential to “create and unlock significant value for shareholders of both companies”.
Story by : Norvisi Mawunyegah