Thembeka Capital, the investment company that focuses on BEE transactions, increased its intrinsic value per share by a hefty 84% from R43,73 to R80,27 per share to bring the intrinsic value of the company to more than R1 billion at year-end February 2011. The increase was driven by strong performances by most of Thembeka’s portfolio companies.
Thembeka’s total assets increased from R891,5 million to R1 513,5 million and its liabilities from R301,6 million to R430,8 million, bringing the net intrinsic value to R1 082,8 million (2010: R589,9 million). A dividend to shareholders of 70 cents per share was declared. This represented a 6% increase with the total dividend amounting to R9,4 million.
Executive chairman of Thembeka Capital, KK Combi, said all portfolio companies contributed to Thembeka’s significant growth over the years. Thembeka has been able to invest in quality businesses, specifically because of its broad based black shareholders.
“We are also proud to announce Thembeka’s fourth consecutive annual dividend. Our dividend policy is a conservative balance between Thembeka’s need to retain capital for further investment opportunities and our shareholders’ desire for an annual cash return on their investment,” Combi said.
The dividend will be paid in July 2011, after Thembeka’s annual general meeting, which is to be held on 15 June 2011 in Stellenbosch.
Thembeka managed to achieve an annual compound growth rate in its intrinsic value per share of 57% from 2006 to 2011. Thembeka benchmarks its performance annually against the ALSI and FINDI 30 indices and managed to outperform these indices by 61% and 63% respectively during its 2011 financial year.
During the year Thembeka made three sizeable investments totalling R151 million. It acquired:
· additional shares in Capitec Bank for a total cost of R61 million at an average price of R116 per share;
· 15% in Kaap Agri Bedrywe for R70 million; and
· a stake in the public MTN Zakhele BEE scheme totalling R20 million.
“As BEE partner and through innovative thinking and loyal support, Thembeka has proven its ability to add significant value to each of its underlying investments. Thembeka has set itself apart from its competitors through building a strong balance sheet, being able to contribute and raise its own capital for BEE deals, supporting the entrepreneurs (our partners) and developing an extensive and reliable network throughout corporate South Africa. Thembeka remains a true empowerment vehicle representing a broad base of black shareholders.
“Thembeka is not sector specific in its investment approach. The company will continue to look for companies where it can contribute strategically. Our number one criteria is that any prospective business must have strong management with whom we share an entrepreneurial ambition to take that business to the next level. In size, a prospective company should have a three year profitable history with annual after tax profits in excess of R40 million.”
“Thembeka’s primary objective remains to create wealth for shareholders. We cannot achieve this without building a long-term, value-added relationship with our underlying partners. Our challenge is to continue to do good deals with good people,” Combi said.
KK Combi, Thembeka Capital
Tel: (021) 886 6578
Fax: (021) 882 8387
Mobile: 083 488 0100