The management buy-out of Isambane Mining has been facilitated by Kholo Capital Mezzanine Debt Fund I (Kholo Capital) and Tensai Private Equity, which provided R275 million in debt funding. Isambane provides opencast mining services, including drilling, blasting, loading, hauling, rehabilitation, and day-work services to mining clients.
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A management buy-out (MBO) of Isambane Mining has been facilitated by Kholo Capital Mezzanine Debt Fund I (Kholo Capital) and Tensai Private Equity, which provided R275 million in debt funding.
Isambane provides opencast services, including drilling, blasting, loading, hauling, rehabilitation, and day-work services to mining clients. The transaction effectively makes Isambane a majority black-owned and black-controlled mining services company.
Founded in 2005, Isambane grew into an established South African contract mining operator. The transaction enables it’s management team to acquire 100% ownership of the business, strengthening operational control and positioning the company for its next growth phase, a statement said Tuesday. The mezzanine funding package comprises R200m provided by Kholo Capital and R75m from Tensai Private Equity.
The management consortium is led by Chairman Banzi Giyose, CEO Johan Venter, and CFO Jorrie Jordaan, who were advised by Bravura Capital.
“We are delighted to support Isambane’s management team in acquiring full ownership of this business. 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,” said Kholo’s managing partner and founder Zaheer Cassim.
He said Isambane had 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. The leadership team’s experience—spanning more than 170 years across operations, engineering, safety, and financial management—would provide a solid foundation for continued execution and growth, he said.
“This transaction also aligns ownership with those closest to the business, enhances black ownership and control, and positions Isambane to capitalise on opportunities in the mining services sector. We look forward to partnering with management as a long-term capital provider, supporting their strategic objectives and helping unlock further value in the business,” he said.
Kholo Capital's other managing partner and founder Mokgome Mogoba said Isambane’s portfolio included 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,” he said.
“Tensai is pleased to partner with Kholo Capital on this transaction. Isambane’s established position and resilient operating model make it an attractive investment,” the company said in a statement.
Soria Hay of Bravura Capital said they had assisted management to achieve the 100% MBO from within less than nine months from the initial engagement.
“With Isambane being a capital-intensive business, we had to navigate the legal relationships with the various senior lenders carefully to achieve this outcome. The Kholo Capital and Tensai teams were meticulous and were helpful to address the invariable niggles that always arise during these types of transactions,” said Hay.
Banzi Giyose, Isambane chairman said the transaction marked the beginning of a new chapter for the company grounded in purpose, operational excellence, and sustainable value creation.
“This transaction represents a transformational step for Isambane, aligning ownership with a management team deeply committed to the business and its long-term success. Kholo Capital brought strong credibility, commercial rigour, and execution capability to the process. We enter this next phase with confidence,” said Isambane CEO Johan Venter.
Deneys acted as lead counsel to Kholo Capital, conducting comprehensive legal due diligence on Isambane and its group companies’ business and existing senior funding arrangements, advising on the structuring of the transaction, drafting and negotiating the finance documents, the security documents, and related transaction agreements. The team also ensured the mezzanine funding was appropriately structured and secured alongside existing senior funding, without reliance on a security SPV structure.
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