South Africa: Kholo Capital and Tensai Private Equity back Isambane Mining MBO
Funding supports management’s acquisition of full ownership of the South African mining contractor.
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The Kholo Capital Mezzanine Debt Fund I and Tensai Private Equity today announced the provision of R275 million (about $16.4 million) in mezzanine debt funding to support the management buy-out (MBO) of Isambane Mining, a mid-tier mining contractor in South Africa.
Isambane delivers opencast mining services, including drilling, blasting, loading, hauling, rehabilitation and day-work services to blue-chip mining clients.
The R275 million mezzanine funding package comprises R200 million (about $11.9 million) provided by Kholo Capital and R75 million (about $4.5 million) from Tensai Private Equity.
The management consortium is led by chairman Banzi Giyose, CEO Johan Venter and chief financial officer Jorrie Jordaan.
Zaheer Cassim, managing partner and founder of Kholo Capital, commented: “This transaction is a strong example of how structured mezzanine debt capital can enable management-led ownership transitions without unnecessary equity dilution, while providing the flexibility required to sustain growth and operational momentum. Isambane has built a high-quality, resilient platform underpinned by long-standing relationships with tier-1 mining clients, strong cash flow generation, and a scalable operating model.”
Mokgome Mogoba, managing partner and founder of Kholo Capital, added: “Isambane’s portfolio includes multi-year contracts with tier-1 mining clients, providing strong revenue visibility. Its flexible operating model enables rapid redeployment of fleet and personnel, significantly mitigating contract and asset utilisation risk. Importantly, this transaction enhances black ownership and control in a sector that has historically lacked transformation. Isambane is now a majority black-owned and black-controlled mining services company. This transaction reflects continued investor confidence in South Africa’s mining services sector and highlights the role of structured mezzanine debt in enabling management-led ownership transitions.”
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