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NKUNZI INVESTMENT HOLDINGS (NKUNZI) is a
black-controlled, managed and owned investment company that
invests in medium to larger companies using Leveraged
Management Buy-Outs (MBO) and Leveraged Management Buy-Ins (MBI).
Mkunzi is headquartered in KwaZulu-Natal but has investments
throughout South Africa.
These highly
leveraged transactions are particularly well suited to:
- Bringing
in meaningful Black Equity participation on a par with
existing and/or future owner managers; and
- Helping
shareholders in medium to large sized businesses to
re-structure shareholding, allowing those shareholders
whose interests are no longer fully aligned with the
business to “cash out” partially or completely.
NKUNZI WILL INVEST IN
BUSINESSES THAT:
- Are stable
with experienced, professional management teams with
specific expertise in their industry, some of whom, at
least, want to stay invested in their companies;
- Have a
history of a strong or positive cash-flow generating
ability, due to their margin and/or growth
characteristics;
- Have
turnovers in excess of R100 million.
THE BENEFITS OF USING
NKUNZI
Nkunzi’s model
enables current shareholders to realise fair value for their
shareholding while obtaining the broad-based black ownership
needed by the Empowerment Charters.
For large listed or multinational companies wishing to
divest of business units or outsource manufacturing, an
Nkunzi deal offers the following benefits:
-
Empowerment points in ‘Indirect Empowerment’ via
Enterprise Development (weighting 15% on most
charters);
- Assist
considerably in ‘Affirmative Procurement’ Targets
(weighting 20% in most Empowerment Charters) if they
continue to source goods or services from the
divested business unit;
- A
quick, confidential deal that can assist the current
management (both black and white) become owners of
the divested unit (if appropriate).
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