By ZiMining/Reuters
NORTHAM Platinum NPHJ.J said on Tuesday it was inviting potential suitors to a competitive bidding process after receiving an unsolicited offer for a transaction from an unnamed major South African platinum miner, Reuters reported.
South Africa’s fourth-largest platinum group metal miner said in a statement it had recently been approached for a potential unspecified “asset-level” or “corporate” transaction, according to Reuters.
Northam said it was inviting proposals on a range of potential transactions, including by the interested PGM producer, to pick the most favourable deal.
The company said its board had identified a range of parties it considers to be credible who may wish to pursue a transaction with the company.
It said it is not pursuing a particular outcome and will not prescribe the nature or structure of potential transactions, but will consider credible proposals that will create and enhance shareholder value, Reuters reported.
Northam currently produces around 940,000 ounces of PGMs and 1.7 million metric tonnes of chrome annually from its three wholly owned mines, Reuters said. It is targeting 1.5 million ounces of PGMs and 2 million tonnes of chrome production by 2031.
In 2023, Northam lost a bid to acquire mid-tier PGM producer Royal Bafokeng Platinum to Impala Platinum IMPJ.J after a lengthy battle, according to Reuters.
The acquisition of Northam would leave South Africa’s PGM industry with three dominant producers, namely Valterra Platinum VALJ.J, Impala and Sibanye Stillwater SSWJ.J, Reuters reported.
Market analysts say the unsolicited approach likely came from Valterra Platinum, which was demerged from Anglo American last year and has been actively seeking growth opportunities to scale its standalone operations.dailymaverick.co+1
Northam’s shares jumped as much as 12% on the Johannesburg Stock Exchange following the announcement, as investors priced in the potential for a premium takeover offer.
The competitive process covers both “asset-level” and “corporate” transactions, a deliberate ambiguity that preserves Northam’s options across a wide range of deal structures, from selling individual mines to a full corporate merger.
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