Miningmx ? News ? Platinum Group Metals Thu, 14 Oct 2010 Related Stories ? RBH flays AngloPlat for vetoing deal ? Impala likely to revisit RBPlat bid ? RBPlat listing back on track ? RBPlat listing on hold amid mine offer ? RBPlat unveils 'compelling' Q4 listing plan ? The Bafokeng's royal platinum play
Implats bid R20bn for BRPM Andr? Janse van Vuuren | Wed, 13 Oct 2010 14:23
[miningmx.com] -- IMPALA PLATINUM HOLDINGS LIMITED offered to buy the Bafokeng Rasimone Platinum Mine for almost R20bn, before the deal was scuppered by minority shareholder ANGLO PLATINUM LIMITED.
According to a speech delivered by Royal Bafokeng Holdings (RBH) CEO Niall Carroll on Tuesday, various analysts have valued Royal Bafokeng Platinum between R9bn and R11bn in the lead up to the company's proposed listing.
"...the company last month announced its intention to list on the JSE by the end of the year," said Carroll. "A week later, Implats made a credible, indicative offer for 100% of BRPM for just under R20bn."
Miningmx earlier reported a deal would've amounted to between R13.5bn and R16.5bn.
A deal would've also placed a halt on RBPlat's plans to list before year-end, which will now proceed as planned.
Carroll estimated the opportunity costs to RBH for not selling BRPM to Impala at R3.5bn. AngloPlat was able to veto the Implats offer because of a clause in the joint venture agreement.
Carroll said he could only speculate on the reasons why AngloPlat blocked the deal. The company may have been concerned about strengthening its main rival, may have not liked the price, or may have feared losing its black economic empowerment credits it gained when the joint venture was created, he said.
"Given the substantial premia that this offer represented to market valuation metrics, we would be interested in the analysis of Anglo and their advisors Goldman Sachs on this point," said Carroll.
"AngloPlat's rejection of the Implats offer for BRPM should be seen within the context of the Bafokeng's relationship with Anglo Platinum, which has been an unhappy one for much of the past 80 years. We are, frankly, disappointed that AngloPlat has seen fit, yet again, to frustrate the legitimate aspirations of the community from whose land they have extracted so much value over the decades, as well as stand in the way of increased industry transformation."
On Wednesday, AngloPlat said it rejected the Implats offer on the basis that a deal wouldn't have supported the group's business strategy and was not in the best long term interests of its shareholders.
"We remain firmly committed to our relationship with the Royal Bafokeng Nation and we wish to continue to operate as true and strategic partners in the platinum group metals industry. We believe the RBPlat listing is an exciting and major contribution to the transformation of the industry," said CEO Neville Nicolau
