Mantengu Ltd, the Johannesburg-listed mining and investment group, has terminated its proposed $120 million acquisition of assets belonging to Mauritian investment group Averi Finance, ending a transaction that would have expanded its operations into energy infrastructure, renewables, oil and gas, and digital infrastructure across Africa.

The company announced on November 2 that negotiations had been terminated by mutual agreement, allowing Mantengu to complete a comprehensive review of its investment portfolio and optimise its chrome and platinum operations. The parties may reengage in discussions in 2027.

The decision comes days after Mantengu announced an agreement to sell its wholly owned subsidiary Sublime Technologies Proprietary Limited for R1,001, as part of a restructuring drive aimed at exiting loss-making operations, reducing debt and concentrating resources on its core business.

Mantengu ends proposed $120 million Averi acquisition

The proposed acquisition, first announced on May 20, would have seen Mantengu issue 650 million new ordinary shares to Averi in exchange for its portfolio of energy, power transmission, renewable energy, oil and gas, and digital infrastructure assets across South Africa, Angola and the Democratic Republic of the Congo.

Mantengu had provisionally valued Averi’s assets at approximately $120 million, while Averi had placed a provisional $60 million valuation on Mantengu. The proposed share issuance would have reduced existing shareholders’ collective ownership to approximately 33.3% of the enlarged company.

The transaction was classified as a Category 1 acquisition and reverse takeover under Johannesburg Stock Exchange listings requirements, meaning it would have required shareholder approval and regulatory clearances.

In its November 2 announcement, Mantengu said the parties had mutually agreed to terminate negotiations to allow the company to focus on reviewing its investment portfolio and improving its chrome and platinum operations. Although discussions could resume in 2027, the termination removes the immediate prospect of the proposed acquisition.

Sublime Technologies disposal underpins restructuring drive

The decision follows Mantengu’s October 29 announcement that it had agreed to dispose of Sublime Technologies, a loss-making subsidiary that formerly produced silicon carbide at its Kriel plant in Mpumalanga.

The operation became unviable after its negotiated electricity pricing agreement with Eskom expired on March 31, 2025. Without an affordable replacement tariff, Sublime has generated no income since June 2025, while continuing to incur substantial operating expenses.

Its monthly costs reached approximately R4 million to R5 million through August 2026 before declining to about R1.2 million from September following a labour consultation process.

Under the disposal agreement, Mantengu will transfer all Sublime shares and outstanding shareholder loan claims to four family trusts represented by Timothy Tebeila for R1,001. The transaction is expected to reduce group debt by approximately R135 million, including Sublime’s R112 million external debt, provided Mantengu’s guarantee obligations are fully extinguished.

Mantengu refocuses on chrome and platinum operations

The termination of the Averi negotiations marks a shift from the diversification strategy outlined in May, when Mantengu sought to transform itself into a broader African infrastructure investment platform.

Instead, the company is prioritising a comprehensive review of its investment portfolio alongside efforts to optimise its existing chrome and platinum operations. For shareholders, the decision also removes the prospect of the substantial dilution that would have accompanied the proposed issuance of 650 million new shares.

Mantengu said shareholders no longer need to exercise caution when dealing in its securities in relation to the proposed acquisition, following the termination of negotiations. The company has left open the possibility of renewed discussions with Averi in 2027.