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.
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.