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Investment Objective

To achieve a positive return over the life of each investment and participate in empowerment opportunities.

Ideal Investments

Working on transactions and closing of every deal will be driven by commercial and strategic reasons as opposed to just sentiment of empowerment. Ideal investments will therefore be:

  • Unlisted companies with well-established market niches, successful track records and growth strategies that support the prospect of high return. Typically, these should exclude companies with less than two years of operating history and companies that are highly capital-intensive.
  • Quality and highly motivated management teams that would not need day-to-day assistance from IMVUSO. It is important that management and IMVUSO work well together.
  • Investments in which IMVUSO could be able to add demonstrable value and realise its investment objective within 5 years.
  • Companies that have begun, or that are willing to begin, recruiting and promoting talented black professionals to their highest levels.

Pre-Investment Process

Prior to any investment IMVUSO representative(s) will:

  • Meet with the principals of a prospective portfolio company in order to determine whether or not there is a basis for further discussions.
  • Conduct limited financial and business due diligence by:
    • Determining whether or not the opportunity satisfies the IMVUSO’s investment criteria
    • Determining whether or not the investment would enable IMVUSO to meet its financial objective
  • Submit a conditional offer.
  • Conduct more extensive due diligence that will involve IMVUSO executives and their attorneys and accountants.
  • Negotiate and structure a mutually agreeable investment program:
    • Agree on growth strategy, IMVUSO’s role and possible exit strategies.
    • Draft and negotiate key legal agreements.
  • Seek approval of the transaction from IMVUSO’s investment committee.
  • Consummate the investment.

Post-Investment Involvement

Many empowerment investors rely, in part, on dividend flows to settle debt. Therefore, focus has to be put on sustainability of the empowerment transaction. As part of the Post-Investment Involvement:

  • IMVUSO would need to nominate at least one representative to the company’s management or board of directors.
  • IMVUSO’s any other role or participation would depend largely on the extent to which the company would want IMVUSO to be involved and on the nature of the proposed involvement. This involvement could include:
    • Assisting in stimulating turn over growth by facilitating business development (depending on company’s customer base).
    • Assisting in identification of talented black professionals who would complement the existing technical and management teams.
  • In conjunction with the principles of the company, devise and implement appropriate growth and sustainability strategies.


Investments

In October 2007, IMVUSO successfully concluded an empowerment deal by acquiring
an equity stake of 20% in MIP Process Technologies (Pty) Ltd – a process
equipment design, sales and supply company that is based in Rivonia, north of
Johannesburg. “MIP” has grown tremendously as an entity and currently boasts a
turnover R21.0million in its first year of existence.

IMVUSO has participated in the recent Sasol Inzalo BEE Investment transaction by
purchasing an undisclosed number of shares.

Further to this, IMVUSO concluded and signed an MOU with Abhijeet Group, a
diversified Indian corporation, for the acquisition and development of ferro-alloys
related properties.

IMVUSO has also identified logistics (or transportation) and coal mining as some of their preferred key investment areas and is continuously seeking opportunities in these fields.

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