Peter Major on Northam intercepting Impala Platinum's target

Veteran mining analyst Peter Major analyses Royal Bafokeng Platinum’s decision to reject Impala Platinum’s takeover bid, opting for a deal with Northam Platinum instead. In a deal valued at around R17bn, Northam Platinum will buy a third of RBP at R180.50 per share, a 50% premium on its share price before the deal was announced. Strangely, RBP’s share price fell following the announcement. Northam’s slumped 15%, on a day where the producer of precious metals lost more than R10bn. At face value, Major says the consolidation of Impala and RBP made a lot of sense given the operational synergies. Major is more sceptical with synergies and benefits of consolidation with Northam; however, he outlines that Northam CEO Paul Dunne is a shrewd operator and has intentions to scale the business to levels that are attractive for international investment houses.  Learn more about your ad choices. Visit megaphone.fm/adchoices