Impala Platinum Holdings Ltd. failed to secure the acquisition of smaller rival Royal Bafokeng Platinum Ltd. (RBPlat) after its biggest shareholder switched sides at the last minute.
- Impala Chief Executive Nico Muller earlier gained the support of RBPlat’s management and board and was initially prepared to make an offer to acquire the smaller firm this week.
- The plans were hit on Tuesday, however, when Northam Platinum Holdings Ltd. said it would acquire a 32.8% stake in RBPlat, as its biggest shareholder Royal Bafokeng Holdings backed the bid.
- Northam was said to have offered 17 billion rands, a 90% premium to where RBPlat was trading when Impala announced talks to acquire the firm in October. This excludes minority investors.
- Impala has long been eyeing RBPlat, given its low-cost, mechanized assets which could bring about synergies. Impala would have become the top platinum miner if the acquisition pushed through.
Royal Bafokeng is the investment arm of the Bafokeng nation, led by King Kgosi Leruo Motlegi and his advisers.
IMPUY is up 2.89%, RBP up 7.09%, and NPH up 1.60%.