The decision taken by RBH was tabled at, and supported by, meetings of the Board of the Royal Bafokeng Nation Development Trust (RBNDT) and the Royal Bafokeng Nation (RBN) Supreme Council, as the unsolicited offer from Northam maximises value and responsible, sustainable stewardship for the Royal Bafokeng Nation (RBN).
In terms of the agreement reached between RBH and Northam, there is an initial sale of RBH’s 32.8% interest in RBPlat which can increase to 33.3%. The deal values RBH’s 33.3% interest at R17.2bn.
The proceeds of the sale will be realised through a combination of a cash consideration of R8.6bn as well as a share consideration resulting in RBH holding an interest of 8.7% in Northam.
At the conclusion of the transaction, RBH will continue to be a long-term PGM investor, through its various holdings, including through the 2.8% interest that it will hold in RBPlat directly and, will have a further indirect stake through its interest in Northam.
Importantly, the transaction will see immediate investment in partnership with Northam in a number of high-value and high-impact community initiatives in the region that are currently being planned by the RBN and RBH to address the most significant needs of the RBN.
RBH and Northam have agreed three specific interventions in terms of a Memorandum of Understanding:
In addition, as the provision of an integrated and sustainable water infrastructure solution that will enable the delivery of a quality and reliable water supply to RBN communities is such a high priority, RBH will declare a special dividend of R350m to fund this project.
“In considering and accepting the offer made by Northam, RBH continues to firmly focus on prioritising the socio-economic interests and needs of the RBN,” says RBH CEO, Albertinah Kekana.
“This transaction both maximises and accelerates our ambitions on these economic fronts, but also supports direct community interventions,” Kekana adds.