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Northam Platinum is now the largest shareholder of the Royal Bafokeng Platinum

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Johannesburg | Northam Platinum is now the Royal Bafokeng Platinum’s largest shareholder. Northam now owns 32.5 percent of the mining company, making it the largest shareholder. Northam is said to have the option of acquiring 0.58 percent more shares in the transaction.

  • Northam Platinum is now the Royal Bafokeng Platinum’s largest shareholder.
  • Northam now owns 32.5 percent of the mining company, making it the largest shareholder.
  • Northam is said to have the option of acquiring 0.58 percent more shares in the transaction.
  • Royal Bafokeng Platinum completed the sale of 32.5 percent of its shares to Northam Platinum in an R17.2 billion deal The agreement also includes an option for Northam to acquire an additional 0.58 percent.

Northam is a South African integrated platinum group metals mining company based in Limpopo. The mining company also owns the Zondereinde mine, which consists of two reefs: the Merensky reef and the UG2 reef. The Royal Bafokeng Platinum (RBH) is a mid-tier platinum group metals (PGMs) producer based in Rustenburg, South Africa, with corporate headquarters in Johannesburg.

Royal Bafokeng Platinum completed the sale of 32.5 percent of its shares to Northam Platinum in an R17.2 billion deal The agreement also includes an option for Northam to acquire an additional 0.58 percent. RBH stated that it retains the 0.58 percent stake, as well as a 2.7 percent stake held through Emikaway, one of its subsidiaries..

The Northam deal had most investors surprised and it managed to go through successfully in contrast with Impala (Implants)’s previous efforts of acquiring RBH.Last month, Implants proposed buying RBH, but RBH rejected the offer, instead opting for the Northam deal.

However, Bloomberg had reported that if Implants had managed to get the deal, the potential deal would have helped the miner exploit synergies from deposits adjacent to its sprawling Rustenburg mining complex. The merged company would have produced 3.45 million ounces a year, overtaking Sibanye Stillwater and Anglo American Platinum in terms of output, and rivalling Russian giant MMC Norilsk Nickel PJSC.

Earlier this November, Northam CEO Paul Dunne stated that its own acquisition of RBPlat would facilitate a compelling and complementary synergistic fit between the business operations, with the potential to create and unlock significant value for both companies’ shareholders.

According to the Royal Bafokeng Platinum. The group will continue being a platinum group metals investor.

“At the conclusion of the transaction, RBH will continue to be a long-term [platinum group metals] investor, through its various holdings, including through the 2.8% interest that it will hold in RBPlat directly and, will have a further indirect stake through its interest in Northam,” said Rbh previously.

However, Northam’s share price fell by over 4% in morning trade, while RBPlat dropped by nearly 2%.

Staff Writer

Published by
Staff Writer