Johannesburg, South Africa — MININGREVIEW.COM — 18 April 2008 – Leading international platinum producer Impala Platinum Holdings Limited (Implats) has entered into agreements costing US$790 million (almost R6.2 billion) with Aquarius Platinum Limited (AQP) and Aquarius Platinum South Africa Limited (AQPSA). The two companies are purchasing Implats’ entire interest in them
An Implats statement released here yesterday confirms that AQP will purchase the 8.4% Implats holding for a total consideration of US285 million (R2.4 billion), while AQPSA – a 54% held subsidiary of AQP – will purchase the 20% Implats holding for a total consideration of US459 million (R3.7 billion).
The transactions are subject to the fulfillment of the following conditions:
- AQP and AQPSA obtaining the necessary funding for the share buyback
- AQP, AQPSA and Implats obtaining the necessary South African regulatory approvals for the implementation of the transactions.
The statement expresses the Implats belief that its decision to exit is not only mutually beneficial, but also leaves AQP as a strong, independent platinum player. “The parties will continue with their relationship through the off-take agreements with Marikana and Everest,” it adds.
The transaction is expected to be completed by the 25 April 2008, provided the above conditions have been met.
Implats CEO David Brown commented, “The group has transformed from a resource-constrained company to one which has a range of growth opportunities. Having made an exceptional return on its investments in the AQP group, it was deemed an appropriate time to dispose of these non-core assets,” he explained.
“Implats is evaluating a number of options regarding the effective use of the proceeds, and shareholders will be updated in due course,” the statement concludes.