Aug

Masana Petroleum broadens B-BBEE base

2016-08-11 11:48
Masana Petroleum Solutions has completed a transaction with a new Broad Based Black Economic Empowerment (B-BBEE) consortium that will see the new partners acquire a 35% stake in the business

Masana Petroleum Solutions has completed a transaction with a new Broad Based Black Economic Empowerment (B-BBEE) consortium that will see the new partners acquire 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 all with extensive experience as fund managers across a wide range of sectors such as mining, energy, infrastructure telecommunications and financial services.

Shakes Matiwaza from Kwande Capital, the consortium’s Chief Executive says “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 Masana. Lelo Rantloane from Ata Capital and Deon Dhlomo from Kwande Capital and will join the board of Directors of Masana”.

The transaction was concluded after a 10-month competitive process where every bidder was treated in a fair and transparent manner.

As part of the transaction, the Mineworkers Investment Company (MIC) and the WDB Investment Holdings (WDBIH) realised their value by selling their equity stake after being part of the Masana success story over the last 10 years which saw the company grow strongly. Both companies have been active participants in the growth of Masana and have achieved their initial goals of investment in the company and are proud of their association with Masana.

Commenting on the exit of the current partners, Paul Nkuna, the chairman of Masana Petroleum Solutions said: “While all parties have benefitted 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 today shows our continued commitment to South Africa’s transformation agenda as we welcome new B-BBEE shareholders in Masana.”

Cynthia Mapaure, Financial Director of Mineworkers Investment Company (MIC) noted: “We have been invested in Masana for over 10 years, and our investment has consistently performed to expectations. Besides the value considerations for the MIC, the disposal of the Masana investment has provided an opportunity for new B-BBEE entrants to invest in a dynamic business with strong management and good future prospects. We wish the company and its new partners well in its future endeavours,” she says.

Faith Khanyile, the Chief Executive Officer of WDBIH said: “Our investment in Masana Petroleum Solutions over the last 10 years has enabled WDBIH to be at the forefront of uplifting the economic status of women in South Africa. Masana has grown to be a successful business and a good demonstration of how economic transformation and B-BBEE can lead to success in the petroleum industry where there has been limited participation of women. Our investment in Masana has exceeded our initial expectations. Our partnership has gone a long way in assisting our mandate to ensure that we deliver on business growth through our investments and realise transformation through our active involvement and establishing long term partnerships.

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