Shares in Impala Platinum fell more than 3% on Friday after it unveiled plans for a cash-and-stock deal worth R22-billion to buy Mvelaphanda Resources and its Northam Platinum unit.
Shares in Mvela rose as much as 4% on the announcement, which came after the market closed on Thursday, but traded up 1,54% by 7.09am, while Northam jumped 4,6%. Implats fell more than 3% but traded 1,7% lower at R144,50 by 7.09am GMT.
Seventy percent of the transaction amount will be in shares. Based on closing prices on October 1, the deal offers premiums of 28% and 26% for Mvela and Northam shares. – Reuters