Mantengu flags potential reverse takeover in $120 million AVERI Finance asset deal

Mantengu Mining Ltd, the Johannesburg-listed investment holding company, has renewed a cautionary announcement tied to its proposed $120 million acquisition of Mauritian energy and infrastructure investment group AVERI Finance assets, a transaction that could evolve into a reverse takeover and significantly reshape the company’s strategic direction.

The company said negotiations are progressing, with the deal expected to unlock diversified revenue streams and expand its footprint beyond mining into the oil and gas as well as renewable energy sectors. 

The proposed acquisition, announced on May 20, was arranged to see Mantengu issue 650 million new ordinary shares to Averi in exchange for Averi’s portfolio of energy, power transmission, renewables, oil and gas, and digital infrastructure assets across South Africa, Angola and the Democratic Republic of the Congo. It was also aimed to strengthen Mantengu’s Pan-African exposure, marking a shift toward a broader, multi-sector investment model.

Strategic shift beyond mining

The transaction signals a potential transformation for Mantengu, positioning it to reduce reliance on its traditional mining operations while tapping into energy and financial asset opportunities across Africa. If completed, the deal could materially alter the company’s business profile and long-term growth trajectory.

Mantengu has appointed Bowmans, a leading Pan-African law firm, to oversee the legal and regulatory aspects of the transaction, including an ongoing due diligence process. The firm’s involvement underscores the scale and complexity of the proposed acquisition.

Caution to shareholders

The company warned that the transaction, if successfully concluded, may have a material impact on its share price. As a result, shareholders have been advised to exercise caution when trading in Mantengu securities until further updates are provided.

Mantengu said it will continue to keep investors informed as key milestones in the acquisition process are reached.