Fynbos

Investments

Investment Objectives


Fynbos:


  • is looking ideally for investee companies that would benefit from an improved BEE rating and/or assistance with all aspects of transformation, but the latter only if the investee company so wishes.
  • is not looking for a controlling stake but typically somewhere between a 10% and 35% stake in investee companies.
  • does not intend to be operationally involved in the investee companies, although it can offer operational advice for sectors in which it has expertise. This is because its skills set is more at a strategic level.
  • is looking to invest into investee companies having an enterprise value in excess of R25 million. This is to ensure focus and the allocation of sufficient time and resources to each investee company. It should be noted that Fynbos is not intending to list or pursue other such strategy, as is the goal of many BEE companies.
  • is looking for established, well-managed companies of at least 5 years or older with a sound and ethical management team and with strong cash flows.
  • is looking for investee companies with strong corporate governance in line with King II codes of good practice.

Investment Strategy


Fynbos:


  • strives to acquire significant and strategic minority stakes in targeted businesses so as to ensure adequate empowerment representation and influence.
  • has a modest capital base and thus investment entry is effected via support from vendors and/or third parties on a case specific basis. Fynbos has relationships with financiers and funders so capital for transactions will be available.
  • aims for each investee company to be managed and financed on a stand-alone basis.
  • has an investment model which provides for co-operation with co-investors and management in order to derive innovative solutions and maximise value.

Existing Investments

  • THE GRAPE COMPANY
    Fynbos holds an equity stake in The Grape Company (Pty) Ltd, a Paarl-based operation established in 1997, which specialises in the export of table grapes worldwide. Exports are concentrated on the supermarket business in continental Europe, the UK, Far East, Canada and Israel, although new markets are constantly sought.
  • MULTICHOICE S A
    Fynbos holds an equity interest in Multichoice SA, acquired by means of a public offer by Phuthuma Nathi in 2006 (45 million shares offered to the public representing 15% stake in Multichoice SA) and Phuthuma Nathi 2 (22.5 million shares offered to the public representing a further 7.5% stake in Multichoice SA) in 2007 as part of Mulitchoice SA's empowerment drive.