Impala Platinum (Implats) announced yesterday that the Royal Bafokeng Platinum (RBPlat) shares would be suspended from trading on the JSE on Wednesday - a bittersweet moment for RBPlat CEO Steve Phiri.
In a statement, the group said it expected that RBPlat shares would be delisted from the JSE on Monday, September 18, 2023.
On July 24, 2023, RBPlat shareholders, who held more than 90% of the RBPlat shares, accepted Implats offer to acquire more of the shares that it didn't own.
Implats currently holds 98.73% of RBPlat’s issued ordinary share capital. This will result in RBPlat becoming a wholly-owned subsidiary of Implats.
Implats said if any of the remaining RBPlat shareholders wished to oppose Implats compulsorily acquiring their remaining RBPlat shares, such shareholders were advised that they are entitled to make an application to a court in terms of the Companies Act within 30 business days after receiving the notice, seeking an order in terms of the relevant section.
"Implats will be entitled and bound to compulsorily acquire from each remaining RBPlat shareholder, all of their remaining RBPlat shares in accordance with the provisions of the Companies Act," the group said.
Implats said it would be entitled and bound to compulsorily acquire from each remaining RBPlat shareholder if the shareholders did not approach the courts after six weeks of the notice, and if such an application has been made to a court and is pending, after the application has been disposed of.
Meanwhile, RBPlat CEO Phiri said: “This is a bittersweet moment for me. Having been at the helm of RBPlat for 13 years, I have witnessed the contribution that the business has made to the country.
“However, I firmly believe that this is the logical next step for the industry, and it will enable the combined business to build on the solid foundation that has been laid.
“The merged entity will combine the complementary strengths and talents of our two companies. RBPlat becoming a subsidiary of Implats means that the sum of the parts of the two businesses can maintain or enhance the interests of our shareholders, communities, employees and other stakeholders,” he said.
RBPlat said the merged entity would have a stronger and more flexible balance sheet and be better able to withstand market volatility through the cycle and deliver sustainable dividends.
“This enhanced scale would position the combined business to benefit from organic and external growth opportunities.Together, Implats and RBPlat have a long history of demonstrable support of the local economy through the employment of just under 70 000 employees as well as procurement from local historically disadvantaged businesses.
“As part of this transaction, Implats has committed to no merger-related job losses for a period of five years after the Operative Date and the maintenance of RBPlat employees’ conditions of employment and benefits,” RBPlat said.
The group said the combined entity would bring together a diversified operation with a presence in South Africa, Zimbabwe and Canada.
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