Implats finalises R9bn BEE deal

Implats CEO Nico Muller

First announced in May 2023, this transaction is a key step in fulfilling Implats’ commitment to promote broader black participation in South Africa’s PGM sector.

Equity ownership in Impala and IBR will be via an employee share ownership trust, a community share ownership trust and a strategic empowerment consortium, with ownership of 4%, 4% and 5%, respectively.

Community share: A 4% stake in both Impala and IBPlat will be held by a trust benefiting communities surrounding Implats’ mining operations. The trust will focus on education, skills development, enterprise development, and community infrastructure projects.

Employee share: A new 4% stake in IBR will be held by a trust for the benefit of IBR’s employees, allowing them to share in the company’s success.

Bokamoso consortium: A 5% stake in both Impala and IBR will be held by a strategic consortium led by Siyanda Resources, a well-established Black-owned mining company. The consortium, known as Bokamoso Rustenburg, will provide operational expertise and community engagement.

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Implats has partnered with Siyanda Resources Proprietary Limited (Siyanda Resources), which will lead the participation of the strategic empowerment consortium.

The three components of the transaction will be facilitated through loans provided by Impala and IBR, with dividend flow used to service interest and capital repayments.

'Commitment to meaningful empowerment'

“We are pleased to announce the details of this empowerment transaction, which reaffirms our commitment to meaningful and sustainable economic empowerment across our operations and increases broad-based ownership in the PGM sector," said Implats CEO Nico Muller.

"The transaction demonstrates the Group’s confidence in our business, the PGM sector and South Africa. While the transaction was initially conceived as part of our commitments related to acquiring Impala Bafokeng, the intention was clearly focussed on enabling broad-based participation in the resulting entity — a stronger, longer-life and more sustainable Rustenburg asset base — and meaningful empowerment ownership in the Group’s South African mining, smelting and refining assets."

This provides a solid foundation for sustainable and enduring benefits for the beneficiaries of the transaction and expands ownership across the South African PGM sector

“This BEE deal is a testament to our commitment to transformation and creating a more inclusive mining industry in South Africa. We believe this broad-based ownership model will not only empower communities and employees but also strengthen the long-term sustainability of our operations.”

Effective date

The transaction is expected to become effective on or about June 30, 2024, subject to fulfilling remaining conditions precedent, including approvals from Implats’ lenders. Upon completion, Implats will retain an 87% shareholding in both Impala and IBR.

This landmark transaction is expected to have a positive impact on Implats’ financial performance, although a once-off accounting charge related to the deal will be recognised in the company’s financial statements.

The deal is classified as a Category 2 transaction under the JSE listing requirements and does not involve any related parties.