News24.com | Northam pulls the plug on RBPlats offer as metal prices fall

Royal Bafokeng Platinum se Styldrift is ’n gemeganiseerde ondergrondse myn in Noordwes.

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Northam Platinum has terminated its offer to buy out Royal Bafokeng platinum shareholders, citing "material adverse changes" in metal prices.

"The rhodium closing price has fallen and remained below $9 000.00 per ounce, for 12 consecutive trading days; and the closing 4E [Platinum, Palladium, Rhodium and Gold] Rand basket price has fallen and remained below R33 000 per ounce … for 10 consecutive trading days."

In a release to the market late on Wednesday, Northam said these qualify as material adverse changes, and the company has resultantly terminated its offer to RBPlat shareholders "with immediate effect".

The announcement brings to an end a bitter tussle between Northam and Impala Platinum for control of RBPlat. 

Implats holds almost 41% of RBPlats shares, and Northam has nearly 35%. Both companies had extended an offer to buy out all remaining RBPlat shareholders, although Northam was yet to post its offer circular.

Implats is close to closing out its offer, but the process has been frustrated by regulatory delays preventing it from obtaining a closure certificate from the Takeover Regulation Panel.

The miner has warned that if the deal cannot reach a conclusion soon, it will be forced to walk away.

Implats has also been waiting to hear from the Public Investment Corporation – the last RBPlats shareholder of significance – as to whether it will sell its near-10% stake.

Northam's decision comes just a day after Visio Capital Management publicly called for the company to drop its bid for RBPlat. As reported by Business Day, Viso argued Northam should walk away as "there is no justification for overpaying and risking the balance sheet".

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