Mvela Resources Surges to 8-Month High on Northam Platinum Takeover Offer
Mvelaphanda Resources Ltd. gained to the highest in more than eight months after saying it will spin off its shares in Northam Platinum Ltd., which then plans to buy the South African mining investment company.
Mvela’s stock surged as much as 2.27 rand, or 6 percent, to 39.97 rand, its highest intraday level since May 28, and was trading at 39.24 rand as of 9:48 a.m. in Johannesburg.
Northam will buy Mvela once it has distributed its shares in the platinum miner to investors and bought out Afripalm Resources Ltd., the Johannesburg-based companies said in a joint statement today. Northam will offer 9.6 of its shares for every 100 Mvela shares, based on a Northam share price of 47 rand, and valuing the takeover at 982.8 million rand, the companies said.
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