Impala And Royal Bafokeng Share Prices React Favourably to Acquisition Offer

  • Stock Market Analysis

Impala Platinum to acquire 24.5% of Royal Bafokeng Platinum

Implats (JO: IMPJ ) has announced that the company has concluded agreements with a number of institutional shareholders to buy 24.5% of Royal Bafokeng Platinum (JO: RBPCBe ).

Impala offer to ordinary shareholders of Royal Bafokeng

The company has further announced its intention to buy the remaining issued ordinary share capital of RBPlat, with a minimum acceptance level of 50%.

Details of the offer

Implats firm intention offer is at value of R150 per share, for all the shares it does not already hold in RBPlat. The R150 per share offer is made up of R90 in cash and 0.30 Implats shares for one RBPlat share.

Suggested benefit of the offer

Implats’ acquisition of a majority stake in RBPlat is suggested to provide strategic, operational and financial benefits for all stakeholders. The acquisition and the synergies created are expected to grow and optimize the value of the Implats asset portfolio, enhancing the group’s Western Limb production base the most significant source of Platinum Group Metal (PGM) production globally. The group has also suggested that by extending life of mines, the acquisition would increase job security as well as socio-economic benefits, particularly within the greater-Rustenburg region.

RBPlats to review offer

The RBPlat board has appointed PSG Capital as an independent to assess and guide shareholders as to whether the terms and conditions of the deal are fair and reasonable

Impala Platinum – Technical View

Impala Platinum – Technical View chartSource: IG Charts

The share price of Impala Platinum has formed a bullish price reversal off range support at 17910. The price reversal is supported by a move out of oversold territory by the stochastic oscillator.

Range resistance at 22710 provides the initial upside target from the move. Traders who are long might consider using a close below the reversal low at 17910 as a stop loss indication for the trade.

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