Northam Platinum Holdings jumped after disclosing that it’s received an unsolicited approach from a “major producer” of platinum-group metals in South Africa.
The Johannesburg-listed miner’s shares surged as much as 11% on Tuesday after the announcement, triggering a short suspension in trading.
The stock later pared those gains and closed the session up 3.1%, valuing the company around R118 billion ($7.4 billion). Northam edged higher on Wednesday.
Northam said it’s initiated a competitive process to “consider proposals from pre-selected third parties and other credible interested parties” regarding potential transactions.
That “follows an unsolicited, exploratory, non-binding approach from a major producer,” the company said in a statement. “The board believes that the process will crystallise the company’s long-term value and strong industry position,” it added.
South Africa is the world’s top supplier of PGMs, with output dominated by four firms. Northam is the smallest of the quartet that also includes Valterra
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