By: Reuters

Northam Platinum NPHJ.J said on Tuesday it was inviting potential suitors to a competitive bidding process after receiving an unsolicited offer for a transaction from an unnamed major South African platinum miner.

South Africa's fourth-largest platinum group metal miner said in a statement it had recently been approached for a potential unspecified "asset-level" or "corporate" transaction.

Here are some details:

Northam said it was inviting proposals on a range of potential transactions, including by the interested PGM producer, to pick the most favourable deal.

The company said its board had identified a range of parties it considers to be credible who may wish to pursue a transaction with the company.

It said it is not pursuing a particular outcome and will not prescribe the nature or structure of potential transactions, but will consider credible proposals that will create and enhance shareholder value.

Northam currently produces around 940,000 ounces of PGMs and 1.7 million metric tons of chrome annually from its three wholly owned mines. It is targeting 1.5 million ounces of PGMs and 2 million tons of chrome production by 2031.

In 2023, Northam lost a bid to acquire mid-tier PGM producer Royal Bafokeng Platinum to Impala Platinum IMPJ.J after a lengthy battle.

The acquisition of Northam would leave South Africa's PGM industry with three dominant producers — Valterra Platinum VALJ.J, Impala and Sibanye Stillwater SSWJ.J.

(Reporting by Olivia Kumwenda-Mtambo and Nelson Banya; Editing by Jan Harvey)