Africa’s largest mezzanine debt fund manager, Vantage Capital has fully exited its investment in Thebe Timrite, a leading supplier of mining support products and services in South Africa.
Vantage provided an 89 million Rand ($6.3 million) mezzanine debt facility to fund the 100% acquisition of Timrite by Thebe Investment Corporation and the Timrite management team in 2013, as well as to fund expansion capital expenditure. Thebe is one of South Africa’s leading black-owned investment companies, managing assets of over 6 billion Rand ($420 million).
“The investment we made in Thebe Timrite demonstrates the support we provide to black-controlled businesses and our commitment to transformation in South Africa,” said Mokgome Mogoba, Associate Partner at Vantage Capital.
“Furthermore, it highlights the faith that we have in the resilience of the South African mining sector and the employment opportunities it creates. This was the second time we had partnered with Thebe as we had previously supported Thebe’s investment in Safripol, another successful investment,” Mogoba added.
““Vantage was an active participant in many board discussions over the past six years at Timrite, helping to shape the growth strategies of the company during a difficult time in South Africa’s mining sector. It was a privilege to engage with Timrite management and Thebe as the company diversified its product range through world-class R&D, introducing new products into the market that have made our mines safer,” said Luc Albinski, Managing Partner at Vantage Capital.
Nonhlanhla Mabusela, CEO of Thebe Timrite, said the firm was grateful to have partnered with Vantage Capital during both strong and turbulent times within the mining sector in recent years.
“Vantage’s funding did indeed play a key role in facilitating black ownership in the underground roof support market, placing Timrite miles ahead of its peers in its transformation targets,” Mabusela continued.
Expressing gratitude towards Vantage Capital for past services rendered, Sizwe Mncwango, CEO of Thebe, noted that the exit allows Thebe to become a sole shareholder of Thebe Timrite.
To date, Vantage Capital has successfully exited nine investments generating proceeds of 2.6 billion Rand ($190 million) across its three generations of mezzanine debt funds.