Mining Weekly

Mining industry direct fuel supplier Masana Petroleum Solutions has completed a transaction with a new broad-based black economic-empowerment (BBBEE) consortium. The new partners have attained a 35% stake in the business after two of its founding shareholders exercised their right to realise their value in the company.

The new consortium consists of three black-owned venture capital firms, namely Ata Capital, Kwande Capital and Identity Capital partners. Masana points out that these companies have extensive experience as fund managers across a range of sectors, such as mining, energy, infrastructure, telecommunications and financial services.

“We are excited to be a shareholder in Masana. The 35% share acquisition is a significant investment for us and we are excited and looking forward to creating value for the company,” Kwande Capital CE and consortium CE Shakes Matiwaza remarks.

Ata Capital executive board member and CEO Lelo Rantloane and Kwande Capital executive director Deon Dhlomo will both join the board of directors of Masana.

“The transaction was concluded after a ten-month competitive process where every bidder was treated in a fair and transparent manner,” says Masana chairperson Paul Nkuna. He adds that, as part of the transaction, investment company Mineworkers Investment Company (MIC) and private- equity investment firm WDB Investment Holdings (WDBIH) realised their value by selling their equity stake after being part of the “Masana success story” over the last ten years, which saw the company grow strongly.

Commenting on the exit of the current partners, Nkuna said: “While all parties have benefited from our partnership, our founding empowerment partners have decided to realise their value from the company, which is common with all growing businesses. “The announcement shows our continued commitment to South Africa’s transformation agenda, as we welcome new BBBEE shareholders in Masana.”

MIC FD Cynthia Mapaure elaborates that the company had been invested in Masana for over ten years and its investment had “consistently performed to expectations”. She says that, besides the value considerations for MIC, the disposal of the Masana investment has provided an opportunity for new BBBEE entrants to invest in “a dynamic business” with strong management and good future prospects.

Further, WDBIH CEO Faith Khanyile comments that the company’s investment in Masana made if possible for the company to be at the forefront of uplifting the economic status of women in South Africa. She highlights that Masana has grown to be a successful business, exemplifying how economic transformation and BBBEE can lead to success in the petroleum industry, where there has been limited participation by women.

“Our investment in Masana has exceeded our initial expectations. Our partnership has gone a long way in [supporting] our mandate to ensure that we deliver on business growth through our investments and realise transformation through our active involvement and [establishment of] long-term partnerships. “We wish Masana and the new shareholders well for the future,” Khanyile concludes.