Momentum Corporate is set to acquire 100% of Verso Group. It will pay R26.25 million for Vunani Capital’s 50% interest, while the consideration for the remaining 50% held by Verso’s management and founders has not been disclosed.
Vunani announced the transaction in a SENS issued on 28 September 2026. A day later, Momentum Corporate issued a media statement announcing the acquisition.
Vunani’s stake is being acquired for R26.25m – 75% more than the R15m it paid for its interest four years ago. Momentum, however, says the purchase price was based on its own valuation of the business at the time of the transaction and not on Vunani’s historical purchase price or current carrying value.
The acquisition comes despite Verso remaining loss-making in its past two annual results, while its reported net assets have declined.
Vunani acquired its interest in Verso on 1 October 2022 for R15m. Its 2026 annual report records the investment as 33% of Verso’s shares and 50% of its economic and voting interests. The investment is accounted for as a jointly controlled venture.
Since then, Verso’s revenue has grown, but its bottom line has moved in the opposite direction.
Revenue growth, but another loss
Verso generated revenue of R59.45m in the year to the end of 2024, increasing to R71.66m in 2025 and R75.7m in 2026.
The business reported a loss after tax of R5.62m in 2024. The loss narrowed to R334 000 in 2025, before widening to R2.03m in 2026. Vunani’s share of the 2026 loss was R1.06m.
Over the same period, Verso’s net assets fell from R19.79m in February 2024 to R19.47m in 2025 and R16.46m in February 2026.
Vunani’s share of the net assets was R9.9m in 2024, R9.65m in 2025, and R8.59m in 2026.
Against the latest carrying value of R8.59m, the R26.25m consideration represents just over three times the value of Vunani’s share of Verso’s reported net assets.
That is an accounting comparison rather than a measure of what the business is necessarily worth to another owner.
Momentum says the losses need to be viewed in the context of Verso’s size and the economics of retirement fund administration.
“Scale is important in retirement fund administration,” it said, pointing to potential efficiencies over time from avoiding duplication in IT, overheads, office space, and other ancillary functions. It also expects some natural staff attrition over time.
The acquisition also gives Momentum access to businesses that complement areas in which it already operates. In addition to retirement fund administration, Verso has smaller healthcare and employee-benefits consulting businesses and a wealth management business.
What Momentum is buying
Verso was established in June 2000 as a provider of pension and retirement fund administration services before expanding into employee benefits and group risk consulting.
Vunani describes Verso as a group of private companies operating primarily in financial services. Its businesses include Verso Financial Services, Verso Health, Verso Wealth, Verso Money Brokers, and Verso Funds Administrator.
Verso Financial Services develops and owns its own administration software and has obtained an ISAE 3042 Type II report relating to its business processes and controls.
Momentum Corporate says the acquisition will strengthen its retirement fund administration and consulting capabilities and support its longer-term growth strategy, adding Verso’s specialist expertise, experienced team, and longstanding client relationships.
Dumo Mbethe, the chief executive of Momentum Corporate, said: “Verso has built a business grounded in specialist expertise, strong client relationships, and service excellence. Bringing Verso into Momentum Corporate allows us to build on that foundation and create further opportunities to support the evolving needs of our clients.”
Momentum says the attraction is not simply the administration business itself. It sees the opportunity to add to its existing client base and gain greater scale across complementary businesses. As Momentum puts it, it “doesn’t do administration for the sake of it”, but designs and offers a range of solutions to its client base, with a larger client base making those solutions more beneficial to Momentum Corporate and the broader group.
Why Vunani is selling
The transaction represents a full disposal of Vunani’s investment in Verso, which resides within its asset administration segment.
Vunani says it will instead focus on growing its 70% shareholding in Fairheads, which remains in the asset administration business.
The R26.25m consideration comprises R20m payable when the transaction closes and a further R6.25m payable after 12 months, subject to commercial and regulatory milestones.
The agreement was signed on 25 September, with an effective date of 1 September 2026. The conditions must be fulfilled within three months of signing, although the longstop date can be extended by agreement. Closing is scheduled for the seventh business day after all conditions precedent have been fulfilled.
Momentum has confirmed that the transaction has not yet formally closed. A number of conditions precedent remain outstanding, although it describes these as technical rather than major and expects them to be completed in the coming days. The effective date will remain 1 September 2026.
Those conditions include corporate approvals, regulatory approvals and consents from customers, suppliers and other relevant parties, settlement of amounts owing to Verso, confirmation that there has been no undisclosed leakage, review of the latest management accounts and confirmation that there has been no material adverse change affecting Verso between 1 March 2026 and closing.
Vunani says the proceeds will strengthen its financial position and liquidity and allow it to return capital to shareholders through dividends.
The transaction is classified as a Category 2 transaction under the JSE Listings Requirements.
Changes to Verso management
The transaction will also bring some changes to Verso’s leadership.
One Verso director who is a member of management will retire on the effective date of the transaction, while two other senior management members will retire during the following year.
Momentum has not indicated that the transaction will otherwise result in an immediate wholesale change to the Verso management structure.
Momentum has also said that Verso will continue serving its existing clients during the transition and that current service arrangements will remain in place.
