Browsing: Royal Bafokeng Platinum

Given these enabling circumstances, KKR offered to buy out RJR and reorganize the business and optimize value from its operations. This initial attempt was not warmly received, and RJR sought other investment companies to purchase it. What then ensued was what members of the investment community call putting the company in play.

This describes a scenario where one company is actively pursued by several suitors who desire to purchase it. In the end KKR triumphed albeit having paid a massive premium for the company. Unfortunately, the company did not realize the gains that it had envisaged it would.

The Nabisco operation of the company was spun off into a separate entity and the tobacco interests were also kept separate. All the gains the company anticipated it would make were swallowed up by tobacco lawsuits so that by 1994 the KKR had all but written off its investment in RJR Nabisco.

According to the SENS report both companies are said to have completed reciprocal due diligence exercises towards a transaction implementation agreement”. The statement goes on to mention that shareholders will be kept abreast of the development around this transaction as they arise.
As is the case, whenever there is impending corporate action from a transaction of this kind investors are urged to take care when trading their shares.
This move by Impala Platinum (Implats) to buy out all the issued shares of Royal Bafokeng Platinum (RB Plats) signals consolidation of the platinum sector on the kind of scale last seen when Sibanye Stillwater acquired Lonmin in 2017.