Our purpose

At Siyanda we believe that the characteristics of our strategy, and particularly those pertaining to growth, are as follows:

i. Identifying and acquiring businesses that are not deemed to be core assets by its sellers and which display above average growth potential.

ii. Identifying and acquiring businesses that have an inherent competitive advantage such as low-cost production, a dominant market position and/or technical superiority etc.

iii. Acquiring controlling interests in order to affect the necessary degree of influence and installing professional management teams with the appropriate expertise and skills. An important aspect of this is ensuring that management are correctly incentivised by ensuring alignment between the interests of management and shareholders.

iv. Involving itself actively in the operation of the targeted acquisitions and leveraging its technical and management capabilities, particularly stakeholder management;

v. Diversifying the investment portfolio along both the industry dimension as well as the geographical dimension to help manage the inherent cyclical nature of the resources industry, and to maintain sustained growth through the various economic cycles.

vi. Carefully selecting investment partners that contribute meaningful value and compliment Siyanda’s existing technical and management capabilities.

vii. Once an acquisition has been completed the management team aims to drive growth by reducing or containing costs, increasing production output, increasing profitability and margins, growing market share and improving productivity.

viii. An important aspect of achieving growth is by restructuring and adopting an optimal capital structure within in the business. This usually entails leveraging the investment when the acquisition is made and then deleveraging it through internally generated funds.

ix. Implementing the necessary research and development in order to improve operational efficiencies and potentially expand the product range, ultimately increasing market share and presence.

x. Constantly reviewing and evaluating the performance of an investment against its strategy and making the appropriate corrections and realignments.

xi. In all of its successful transactions to date, Siyanda has increased its economic stake in the businesses, either though acquiring minorities or exercising options. At the right valuation Siyanda would always rather own more of a great company than less.

xii. Once the point has been reached where either Siyanda could no longer achieve meaningful growth or, alternatively, where an attractive opportunity is identified, Siyanda exits the business in the most advantageous manner possible.

xiii. In summary, Siyanda believes that it possesses both the inherent core strategies required to extract value and growth from investments and the entrepreneurial culture to identify and execute against attractive opportunities.