DRDGold deal cracks Competition Authorities nod
The deal in which DRDGold will acquire portions of the West Rand Tailings Retreatment Project (WRTRP) from Sibanye-Stillwater in exchange for approximately 38% of the former's ordinary share capital has been approved by the Competition Authorities.
West Rand Tailings Retreatment Project. Picture: Ince Connect
In addition, DRDGold and Sibanye-Stillwater have entered into an option agreement in terms of which Sibanye-Stillwater will be granted an option to increase its shareholding in DRDGold to 50.1% during the 24 months following implementation of the acquisition.
The approval of the Competition Authorities is subject to the following:
- Should Sibanye-Stillwater elect to exercise the option within a period of 24 months from the date of the approval of the Competition Authorities, Sibanye-Stillwater will inform the Competition Authorities of its decision within 20 business days of exercising the option.
- Should Sibanye-Stillwater elect to exercise the option after a period of 24 months from the approval date, Sibanye-Stillwater will notify the Competition Authorities of its decision for consideration by Competition Authorities as a merger in terms of section 13A of the Competition Act, No. 89 of 1998.
Implementation of the proposed transaction remains conditional on the fulfilment or waiver of certain conditions precedent, including the approval by DRDGold shareholders.