Impala Platinum (Implats), the world’s second-largest platinum producer, says it has won the Business Map Foundation’s award for black economic empowerment (BEE) deal of the year for its transaction with the Royal Bafokeng nation.
The deal saw Implats swap a royalty agreement with the country’s richest tribe for an equity stake in the company, with a current total value of about R16-billion.
“This transaction not only enhances the alignment between our BEE partner and other shareholders, but in addition its broad-based nature when combined with our employee share-option plan is, in our opinion, the true spirit of transformation,” said Implats chief executive David Brown.
The Royal Bafokeng now hold 13,4% of Implats, from 1,3% before.
The deal was changed last year after initial plans were to sell a stake in the company’s refinery services, which could eventually be swapped for equity.
However, to avoid paying double royalties with a Treasury-imposed royalty on the horizon, the deal was altered. — I-Net Bridge