PIC key to platinum miner takeover battle

Impala Platinum said Africa’s biggest fund manager must make a decision over what to do with its Royal Bafokeng Platinum (RBPlat) stake, which has become central to ending an eight-month takeover battle that’s hindering the companies from making future plans.

The Public Investment Corporation, which owns 9.9% of RBPlat according to data compiled by Bloomberg, has had enough time to weigh Impala’s R150-per-share offer, the miner’s chief executive Nico Muller said. A decision on its stake in the smaller miner would help bring certainty to both companies, he added.

While Impala’s bid to win control of RBPlat has been frustrated by an attempt by rival Northam Platinum to also take over the company, the PIC’s indecision is stoking investor uncertainty while delaying the companies from taking strategic decisions, Muller said.

“All the information has been available,” he said this week.

“They have consulted with every conceivable party, they have done the rigorous examination that I believe will stand up to public scrutiny.

“It will be helpful if a position is concluded as soon as possible.”

At stake for Impala is control of assets owned by RBPlat that lie close its own mine complex near Rustenburg.

Rival Northam swooped in and gained a key stake after buying out RBPlat’s biggest shareholder last November.

Since then, Impala has built a 37.8% stake in RBPlat but its bid to complete antitrust approvals and complete the takeover process was delayed after Northam, which owns just under 35%, intervened.

RBPlat’s assets are key to the future of Impala’s biggest mine complex, which employs almost 44 000 people.

Some of the deep-level shafts are running out of commercially viable ore and would only be profitable if exploited alongside RBPlat’s assets, Muller said.

He is “disappointed” a decision hasn’t been announced eight months later.

“The PIC supports any transaction that can demonstrate benefits for its clients,” the fund manager, which oversees R2.34 trillion of mainly government worker pensions, said in a response to queries.

It also owns large stakes in both Impala and Northam.

While Northam is yet to make a general offer, CEO Paul Dunne has said he wants to gain control of RBPlat.