Investors were in for a rollercoaster ride as Impala Platinum (Implats) asserted its control over Royal Bafokeng’s fate, sending its shares plummeting by 3%. With the acquisition of over 90% of Royal Bafokeng’s shares, Implats emerged victorious in its takeover bid, marking a pivotal moment in the mining industry.
The once-promising stock, which traded at R130, experienced a distressing 19.64% decline over the past six months, shaking the confidence of investors. In a noteworthy Stock Exchange News Statement, Implats disclosed that the takeover offer concluded on July 21, 2023, with a staggering 96.21% of shareholders accepting the bid, adding to Implats’ dominance in the company.
The takeover triumph was further amplified when Implats acquired additional shares in Royal Bafokeng, while its competitor Northam relinquished its 34.5% shareholding in the company on July 20. Northam’s decision came after backing out of a proposed buyout of Royal Bafokeng earlier, citing plummeting platinum group metals (PGMs) prices.
Now in full control of nearly 98.35% of Royal Bafokeng’s issued ordinary share capital, Implats is gearing up to invoke Section 124 of the Companies Act. This provision grants Implats the authority to compulsorily acquire all remaining shares not yet under its ownership. As a result, Royal Bafokeng will soon become a wholly-owned subsidiary of Implats and eventually delist from the Johannesburg Stock Exchange (JSE).
In the wake of these significant developments, Implats has firmly announced its intention to delist Royal Bafokeng from the JSE, signaling a seismic shift in the mining sector’s landscape.
Implats has promised to issue an official announcement to provide comprehensive details about these groundbreaking developments. Following this notice, trading of Royal Bafokeng shares on the JSE will be temporarily suspended, leaving investors eagerly anticipating further insights into the implications of this high-stakes takeover.
The completion of the acquisition marks a turning point in both companies’ trajectories, with Implats now poised to steer the course of Royal Bafokeng’s future. The implications of this power play will be closely monitored by stakeholders, as the mining industry braces for a new era of leadership and influence.