Season two of The Bachelor: PGM Edition


Season two of The Bachelor: PGM Edition


Published Date: 2021-11-30 | Source: INCE|Community | Author: The Finance Ghost

Season two of The Bachelor: PGM Edition

If Royal Bafokeng Platinum (RBP) was on Tinder, everyone would be swiping right. Or left. Or whichever way it works, I'm honestly not sure. Ask me about baby food, not Tinder.

Impala Platinum looked set to acquire RBP until Northam Platinum swooped in and seduced RBP's biggest shareholder with money. A lot of money: R180.50 per share, to be exact. At a premium of over 50% to the share price at the time, it's not surprising that Royal Bafokeng Holdings accepted the offer.

This means that Northam now has a 32.8% stake in RBP.

Implats looked down and out until this morning, when the market was set alight by news of an offer from Implats to RBP shareholders of R150 per share. This represents a premium of 22% to RBP's closing price on 24 November.

It also represents a premium of 62% to the price on 26 October, the day before news broke that Implats wanted to buy RBP.

Your first observation may be that this price is a lot lower than the offer made by Northam and that would be correct. The key difference is that the Northam deal wasn't an offer made to all shareholders; it was a private deal with Royal Bafokeng Holdings as the anchor shareholder.

The offer is payable as R90 in cash and 0.3 ordinary shares in Implats.

Critically, Implats has already concluded agreements with institutional shareholders to acquire approximately 24.5% of the shares in RBP. A condition to the offer is that holders of at least 50% of RBP's shares must accept the offer. Northam certainly isn't going to accept it, so a further 25.5% needs to be secured from a pool of around 42.7% of the shares in issue.

PSG has been appointed as the independent expert to opine on the deal. The opinion will be included in the circular to shareholders.


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