PLANNING FOR THE FUTURE - JSE MAGAZINE

PLANNING FOR THE FUTURE

The Mineworkers Investment Company invests not only in businesses with potential for growth, but in people too

The Mineworkers Investment Company (MIC) has come a long way, from R3 million seed capital in 1995 when it opened its doors, into a company with a net asset value of more than R3 billion.

A 100% broad-based BEE investment company, the MIC was formed by the Mineworkers Investment Trust (MIT) 18 years ago. Its aim was to invest in companies with good growth opportunities that would generate strong returns for the investment company, while creating a sustainable asset base for the MIT. Its investments range from media, financial services, industrial, and gaming and technology companies.

The MIC was created not only for the benefit of individuals, but a bigger constituency. For this reason the MIC prioritises the community development and social upliftment of its beneficiary base, estimated at over a million people.

To date, the MIC has paid over R390 million in dividends to the MIT. The money has been invested in the social and developmental needs of the beneficiaries who are current, past and retrenched construction, energy and mining sector workers. The focus is on education, skills training and job creation.

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MIC has a strong financial team who invest in companies with a proven business model and tried-and-tested management

Through its own direct enterprise development interventions, the MIC also provides training to emerging farmers in areas such as drip irrigation and supply capital for tools, equipment and fertilizer. The programme has created jobs and improved the quality of life of rural communities by rolling out a proven commercialisation model such as farming projects in Mpumalanga. The MIC recently initiated a small business incubation programme in Emalahleni in partnership with Raizcorp that assisted selected emerging entrepreneurs.

The MIC is a proactive and credible investment partner, passionate about transformation and delivering shareholder value. The MIC’s CEO Mary Bomela says: ‘We sit on the transformation committees of all our investee companies.

‘That way we are able to give guidance in transformation, training and community projects where it is needed. Like any other investment firm we also are looking for returns that will support our beneficiaries, so our investments are strategic and must meet our investment criteria to deliver optimum returns.

‘We are a prudent investor that seeks to balance growth, sustainability and cash generation in order for us to fulfil our mandate of creating sustainable assets for MIT,’ she says.

The MIC’S investment philosophy
Though tactical investments are entered into from time to time, the MIC prefers to build enduring relationships focused on long-term value creation.

Typically, the MIC:

  • Invests in cash-generative assets.
  • Makes sure that its investments present an opportunity to influence and/or control the asset.
  • Ensures its investment targets demonstrate value growth.
  • Invests in companies with strong management.
  • Does not make competing investments.
  • Aims for long-term investee relationships.
  • Looks to drive continued transformation in its investee companies.
  • Seeks relationships with investee companies that are good corporate citizens.

The MIC has a strong financial team who invest in companies with a proven business model and tried-and-tested management.

Zaheer Abdulla
Zaheer Abdulla joined the MIC in October 2012 and is part of the investment team at the company. He has extensive skills and experience in investments, corporate advisory and mergers and acquisitions. His impressive achievements include advising on a 75 MW solar farm facility and a 140 MW wind farm facility under the Department of Energy’s Renewable Energy Independent Power Producer Procurement programme, both of which reached financial closure in June 2012.

Abdulla also advised the BEE consortium on the acquisition of Scaw Metals in March 2012 from Anglo America.

Abdulla is a leader in origination, negotiation and the implementation of all aspects of new acquisitions and the disposal of non-core investments in the MIC portfolio. He also plays a critical role as an advisor in strategy and corporate governance and provides technical advice to the CEO. He has a BSc honours in actuarial science.

Oren Fuchs
Oren Fuchs is the special projects/senior investment manager for the MIC, which he joined in 2005. Fuchs started his career in 1992 at Robin Lee Associates, a consultancy working in the development sector, and then moved to the municipality in Johannesburg where he worked on urban and regional economic planning. After joining Gauteng’s Treasury department in 1998, he was tasked with setting up Blue IQ, which is a strategic economic infrastructure agency for the province, in 1999.

MIC prioritises the community development and social upliftment of its beneficiary base, estimated at over a million people

In his capacity as general manager of financial viability, he was responsible for the programme management of the Newtown, Constitution Hill and Innovation Hub initiatives, as well as heading up the marketing portfolio. In 2002 Fuchs joined the SABC on contract as corporate strategy manager, where he was involved in a number of strategic initiatives such as regional television licences and outsourcing certain technologies within the corporation.

Oren is a senior investment manager at MIC, and also represents the MIC’s interests on various investee boards. Fuchs heads up the MIC’s marketing and corporate social responsibility portfolio. He has a BA in economics/political science from Wits university, an MSc (DP) and a finance certificate from GIBS.

Nchaupe Khaole
Senior investment manager at the MIC Nchaupe Khaole has more than 10 years’ experience in SA’s financial services industry, primarily as a private equity and corporate finance executive. Khaole has a track record of originating and executing transactions primarily in SA.

However, he recently started extending his deal-making experience across the country’s borders and has an impressive background of managing portfolio investments in various sectors such as media, logistics, manufacturing, industrials, information technology and financial services. Khaole has a BCom honours (investment management) and an MBA.

Mahlatse Kabi
Mahlatse Kabi is a senior investments manager at the MIC and joined the company as a group finance manager in 2005 after serving as finance manager at MultiChoice in SA.

She is known for her exceptional financial and investment expertise. Kabi started her career at KPMG, a global network of professional firms providing audit, tax and advisory services, where she served her articles of clerkship. She has since held various senior roles at big companies such as Standard Bank, FNB and SABMiller. She sits on the boards of the MIC’s strategic investments, which include Tracker Technology Holdings, Masana Petroleum Solutions, Westcon SA and Wesbank, a division of FirstRand. Kabi has a BCom degree, BCompt (honours), and CTA and AGA (SA) qualifications.
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Oren Fuchs
+27 (0)11 088 1800
www.mic.co.za