Zimbabwean equity firm buys shares in Invictus Energy, Joe Mutizwa on board

Ex-Delta Corp. CEO Joe Mutizwa's Mangwana Capital has paid a premium for Invictus stake

Zimbabwean private equity fund Mangwana Opportunities, backed by businessmen Joe Mutizwa and Ted Galante, has taken up shares in Invictus Energy in a placement worth US$287,000.

Funds raised from the transaction will be used at Invictus’ Cabora Bassa Project, including on preparatory works in the project area, CSR programmes in the Muzarabani and Mbire districts and other on-the-ground activities.

To take up the 12.5 million shares, Mangwana Opportunities, managed by Mangwana Capital, paid a 91% premium to the prior five-day volume weighted average price of shares and a 40% increase on the last closing price. The agreement comes with a provision for a further equity investment by Mangwana into the project over the next 12-24 months.

Mangwana chairman Mutizwa, the former Delta Corporate CEO, will now sit on the board of the local arm, Invictus Energy Resources Zimbabwe.

Invictus Managing Director Scott Macmillan said: “We are pleased to announce this investment by Mangwana Opportunities Fund at a premium which strengthens our investor base and in-country presence through the appointment of Joe Mutizwa to our local subsidiary board.”

Approval of the transaction by the Reserve Bank of Zimbabwe Exchange Control is expected shortly, Invictus said.

Mutizwa commented: “We are delighted to become a shareholder of Invictus. Our fund investors comprise a broad range of Zimbabwe’s institutional investors and our investment in Invictus will ensure that they share in the success of the Company.

The Cabora Bassa project in Muzarabani is a potential game changer for the country which can bring about significant economic benefits and energy security to the entire region. We look forward to supporting Invictus to achieve their goals in Zimbabwe and developing our partnership with them.”

[Click to read: INTERVIEW | Invictus Energy: What does the world oil crisis mean for the Muzarabani prospect?]

Who is Mangwana Capital?

The company is led by Mutizwa and American-born Galante, who was recently appointed to the CBZ board.

The company’s Mangwana Opportunities Fund is funded by Zimbabwean institutional investors, and has prescribed asset status. Among investors listed on the company’s website are First Mutual Life, Marsh Insurance, Minerva and Standard Chartered.

Mangwana is also invested in Balu Pecan & Livestock, a 4,500 hectare pecan plantation near Bulawayo, and in Blue Agri, which runs six farms in Zimbabwe and Zambia. Mangwana also has Associated Africa Nickel, a UK-registered company investing in African mines and planning to list on the AIM market in London in 2021.

The shares issued to Mangwana by Invictus will be held in escrow for six months from the date of completion.

Galante is executive director of Mangwana Capital. Ben Mbanga, ex-CEO of Deloitte Central Africa, is MD.

Cost cutting

In response to the global market uncertainty caused by the coronavirus outbreak, Invictus is cutting costs through a 25-50% cut on board and management fees.

“Securing funding from Mangwana ensures that the project spending is unaffected and our exploration program remains on track. The Board believes that the Company’s cost base is now at a more appropriate level for the current circumstances and sees the Company fully funded to deliver a farmout of SG 4571,” Invictus said.