Shareholders of Royal Bafokeng Platinum Limited (RBPlat) were met with significant news today as Impala Platinum Holdings Limited (Implats) confirmed its intention to invoke the provisions of section 124(1) of the Companies Act, 71 of 2008, to compulsorily acquire all RBPlat shares not already held by it.
The development follows the Mandatory Offer made by Implats to acquire RBPlat shares and the subsequent release of the Results Announcement on 24 July 2023. The Results Announcement stated Implats’ intention to proceed with the Compulsory Acquisition of shares from RBPlat shareholders who did not accept the Mandatory Offer.
As a consequence of the Compulsory Acquisition, RBPlat shares will be suspended from trading on the Johannesburg Stock Exchange (JSE) starting Wednesday, 2 August 2023. The suspension will remain in effect until the Compulsory Acquisition process is completed.
Compulsory Acquisition: Key Details
The Compulsory Acquisition involves Implats acquiring RBPlat shares from shareholders who did not accept the Mandatory Offer. This process allows Implats to gain complete ownership of RBPlat and solidify its position in the platinum mining industry.
A summary of key details related to the Compulsory Acquisition is as follows:
| Event | Date |
|---|---|
| Commencement of RBPlat Share Suspension | 2 August 2023 |
| Implats Announcement Release | 1 August 2023 |
| Completion of Compulsory Acquisition | Date to be specified by Implats |
Implications for RBPlat Shareholders
The Compulsory Acquisition raises several implications for RBPlat shareholders. Those who did not accept the Mandatory Offer will have their shares compulsorily acquired by Implats. While shareholders are entitled to compensation for their shares, the offered price will be determined based on the value set during the Mandatory Offer.
RBPlat shareholders will need to closely monitor the proceedings and be aware of the timelines for the Compulsory Acquisition. They should stay informed through official announcements and communications from the company and its advisors.
RBPlat’s Response
RBPlat’s Independent Board has taken responsibility for the accuracy of the information provided in the announcement. They have assured shareholders that the information is true and that nothing crucial has been omitted.
However, it remains uncertain how the company will respond to the Compulsory Acquisition. Shareholders and investors are eagerly awaiting further statements and actions from RBPlat’s management team.
Financial Advisors and Transaction Sponsors
The Compulsory Acquisition process involves several financial advisory firms and sponsors. Questco Proprietary Limited is serving as the Lead Corporate & Financial Advisor and Transaction Sponsor to RBPlat. Merrill Lynch South Africa Proprietary Limited, trading as BofA Securities, has been appointed as the Financial Advisor and JSE Sponsor to RBPlat. Rothschild & Co South Africa Proprietary Limited will serve as the Financial Advisor to RBPlat, while legal matters will be overseen by Bowman Gilfillan Inc.
Conclusion
The Compulsory Acquisition of RBPlat shares by Implats marks a significant development in the mining industry. It reflects Implats’ determination to expand its stake in the platinum sector and strengthen its market position. For RBPlat shareholders, the process carries both financial implications and uncertainty about the company’s future direction.
