Investment Strategy

With NIH at the helm of a group of companies, we have revised our investment strategy to focus on 'significant influence' investing in high growth and stable recession proof industries areas with a specific focus on private equity type deals.

NIH will continue to identify investment opportunities that deliver continuous cash flows in order to achieve our mission of adding value to our shareholders.

NIH's investment model is based on strategic partnerships and leveraging from the deal flow and the expertise of leading private equity houses in South Africa.

NIH will participate in the following types of investment deals:

• LBO
• MBO
• Expansion PE deals
• Opportunistic BEE deals
• Development deals

Sector focus

• Resources
• Property and Infrastructure
• Health, Safety and Education
• Financial Services
• Foods and Agriculture
• Media and Technology

Deal sizes

• Strong focus on mid cap to large size transactions

Levels of participation

• Shareholding levels of 26% to 51%
  

Our Investment Approach

Our investment process has been designed by KPMG, and includes the following:

• Relationships with leading PE funds and investment banks
• NIH networks

• The deals are presented to NIH Executive Committee (EXCO) at a very early stage
• The role of EXCO is to assess the viability of the potential investment deal before presentation to the investment committee

Deal approval

• Preliminary investment committee approval
• Final investment committee approval
• Board approval

Value Addition

NIH seeks to add value to investee companies. The following are some of the key strengths that NIH brings to an investee company:

• the improved stature and public profile in the current business and political climate in South Africa by having close links with a union investment group the size and influence of Nehawu
• the political influence and support that the NIH shareholder body carries is an asset to secure contracts with governmental and quasi governmental organisations
• the lobbying abilities of NEHAWU's influential board of trustees will allow the investee company to be in the forefront of any impending legislation affecting its industry
• access to the mass market, in general, and broad based constituency
• the broad range of industry knowledge within the NIH board that will be transferred to the investee company
• participation and involvement in investee board of directors, to assist in the shaping and fine tuning of the investee's strategic direction

Exit Strategy

NIH will not enter into any investment without a clearly defined exit strategy. It is essential to have a number of options in respect of exit strategies when making an investment in order to retain flexibility and obtain liquidity to realise capital gains on investments.

Further, the nature of many financing transactions through special purpose vehicles may dictate that exit strategies are an integral part of the deal.

NIH employs a number of exit strategies, which include the following options:

• sale of the entire business to a third party
• sale of NIH's equity stake to management or a third party
• listing of the investment on a stock exchange

The exit strategy to be employed will be dependent on market conditions, timing, financing arrangements and other relevant considerations. NIH will not, however exit from any investment while there is a need to remain.

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The Executive Team comprises of:

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	Mr Makgane Neal Thobejane Executive Chairman Masters Degree in Public Management, Diploma in Executive Management Programme. Mr Thobejane is currently a director of EDI Holdings (Pty) Ltd and also acts as Strategic Advisor in the office of the Chief Executive Officer. He is also the Executive Chairman of the Nehawu Investment Holdings (NIH). Before EDI Holdings, he was seconded by the City of Johannesburg to the City of Cape Town as Head of the Validation and Review Committee. He is also the former General Secretary of the NEHAWU.
	Dr F. Randera Non – Executive Director Dr Randera is a medical doctor trained in London. He was appointed by the President to the Truth and Reconciliation Commission in December 1996. He also served as a Convenor of the Johannesburg TRC office. He serves on the Board of NIH, the South African Medical Association and the Human Rights Committee of South Africa.
	Hon Dikeledi Gladys Mahlangu She formerly served as the Principle Communications Officer in the Economic Development and Planning Department in Mpumalanga. She is also the Provincial Chairperson of NEHAWU in the Mpumalanga Province, and holds the position of Branch Deputy Chairperson of the ANC in Mpumalanga, Kwa-Mhlanga Branch. Gladys is currently the MEC of Health in the Mpumalanga legislature.
	Ms Tozama Priscilla Mantashe Non – Executive Director National Diploma in Human Resource Management Ms Mantashe is currently the Chairperson of the ANC branch in Lukhanji Municipality. She is part of the leadership team of NEHAWU. She is also the Chairperson of NEHAWU in the Eastern Cape Province.
	Mr Bheki Phakathi Non – Executive Director Bheki Phakathi is a NEHAWU shop steward. He is a paralegal at Unisa's Legal Resources unit. He has a law degree.
	Mrs Kubeshni Govender Jones Ex Officio Masters in Media Studies, BA Honours (Drama and Film), BA Ms Govender Jones is a business and social entrepreneur who started her career as a communications professional before specialising in the areas of strategic management, knowledge management and innovation. She has been invited to publish on these topics at local and international engagements. She is the MD of TSHEDZA Trust

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Employment is the major route for the alleviation of poverty. NIH has developed four major CSI-projects, guided by established ILO recommendations on Decent Work. The essence of these projects is to create employment opportunities, including “green jobs” and they are targeted at women and the youth. NIH works closely with international partners like the Centre of International Migration (CIM) and the German Development Agency (GTZ):

Bio – refining project

• In co-operation with GTZ and the government driven Thumisano Trust, NIH assisted in the establishment of a joint venture between the University of Port Elizabeth and the University of Bremen/Germany, to run a pilot site for the production of bio-fuels, bio-chemicals and bio-products through transforming CO2 emissions with micro algae via bio-refining. Once the effectiveness of the bio-refining process has been proven, the pilot site will scale-up to a mid-sized facility.
  
  
• A second project has been developed to reduce the levels of carbon emissions and to create “green jobs”. NIH is of the belief that bio-diesel production contributes to cleaner air, lower particles and reduced emissions. Therefore, we seek to establish bio-diesel plants where pre-used cooking oil will be converted into bio-diesel.
  
  
• NIH´s bakery proposal aims to create job opportunities for women in rural areas and townships. This is intended to help address unemployment and acute food shortages. The established bakeries will operate independently from each other but will form a Co-operative to their advantage.
  
  
• To counter the negative effects of labour broking, we are at advanced stages of finalising formal employment for casuals. In terms of the decent work agenda of the ILO recommendations, NIH is organising vocational training and job opportunities with decent wages, medical aid and pension fund for casual workers. Target groups involve women in the service sector, security personnel and construction workers. This project has the support of NEHAWU.

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