CASE STUDY: MANCALA HOLDINGS LIMITED

Rising to the challenges of a downturn in the market

Assignment

Saint Gabriel was an advisor to Mancala Holdings Pty Limited to assist the company with its funding requirements and divestment of vendor interest in the business.

Background

Mancala is a successful private company incorporated in Australia that provides specialist mining services, including raised bore, shaft excavation, engineering services, and other mining services. Mancala’s vendors were seeking a restructure and funding solution. Saint Gabriel identified a potential investor that resulted in the 100 percent acquisition of Mancala by Singapore company Sapphire Corporation. The acquisition meant Mancala had access to the required funding to see it through a difficult market.

The acquisition of Mancala was also timely for Sapphire. The company is listed on the Singapore Stock Exchange and is engaged in the resources business. At the time, it was involved in the manufacture of specialty steel and vanadium products and, due to falling steel prices and rising cost pressures, was operating in a challenging environment. The acquisition of Mancala represented an expansion and diversification of Sapphire’s resources business into the specialist mining services sector.
Saint Gabriel assisted Mancala in identifying, managing and negotiating the transaction.

Outcome

Sapphire acquired 100 percent share of Mancala for the aggregate consideration of up to $15 million. Sapphire also provided $5 million in funding to Mancala for financing and working capital purposes.