South Africa: Mahlako and Thirdway invest in gas project
Mahlako Gas Energy, comprised of two investors, namely Mahlako Energy Fund and Thirdway Investment Partners, will invest R550 million (about $29 million) in Tetra4.
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Mahlako Gas Energy (MGE), comprised of two investors, namely Mahlako Energy Fund and Thirdway Investment Partners, will invest R550 million (about $29 million) in Tetra4, which holds South Africa’s first and only onshore petroleum production right and is the entity developing the Virginia Gas Project. Tetra4 is an operating company of Johannesburg Stock Exchange listed Renergen, a producer of helium and liquefied natural gas.
MGE will own 5.5% of the equity in Tetra4 once all the investment proceeds have been fully invested, while Renergen will be left with a 94.5% stake.
”As Mahlako Energy Fund, we are proud to join forces with Renergen in this groundbreaking partnership. Our investment not only signifies our confidence in the Virginia Gas Project but also reflects our commitment to fostering economic transformation and diversity in the energy sector. Together, we embark on a journey towards a cleaner energy future for South Africa,” said Meta Mhlarhi, principal of the Mahlako Energy Fund.
”As a child who grew up from humbling beginnings in the Free State, I am more proud of how this investment/partnership will benefit the people of the Free State in terms of job creation and enterprise development and the enormous multiplier effect. It is humbling to be able to give back and to meaningfully invest in projects with such visible impact,” said John Oliphant, chairman and co-founder of Thirdway Investment Partners.
The transaction is subject to the fulfilment of several conditions.
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