Shareholder case

 

Investment philosophy

GPI’s corporate business philosophy is to invest in transformation unlocking not only wealth for shareholders, but also embracing a philosophy that advocates an integrated approach to good governance, over and above the standard financial and regulatory aspects of corporate governance.

Subscribing to the principles of the Code of Corporate Practices and Conduct set out in King III, GPI acknowledges that there must be a move away from the single bottom line (i.e. profit for shareholders) towards a triple bottom line which embraces the economic, environmental and social aspects of a company’s activities. In this regard, we are privileged to have empowered our shareholders with the confidence and understanding to trade in the formal market.
  • A focus on consolidating and leveraging full value from existing investments and operations, as well as bedding down recent acquisitions.
  • A continual seeking out of opportunities to acquire further high-quality assets to complement the existing portfolio.
  • The pursuit of further opportunities in the LPM market.
 

Investment policy

GPI is first and foremost a BEE investment holding company and this is the key driver behind each and every investment decision. The board must be satisfied as to each investment’s capacity for generating sustainable earnings for the company (and in so doing, assuring dividends for its shareholders), while maintaining its BEE credentials.

Utilising its unique, Western Cape-based BEE profile to invest in both existing, well-established ventures, as well as in start-ups, GPI’s investment policy seeks to achieve above average returns for its shareholders by investing in undertakings, and entering into joint ventures and other similar alliances, whereby it forms partnerships with such entities, contributing not only capital, but also providing strategic managerial input (ideally at board level), a high profile corporate identity, and, most importantly, impeccable empowerment credentials.

Ideally GPI seeks to acquire significant stakes (more than 20%) in its underlying investments so it is able to suitably influence and equity account its investments. A smaller stake is considered where there is the potential to increase such stake in the future, and where the costs of managing such smaller investment is not inhibitive.

GPI’s track record shows that it has been successful in various start-up ventures, assisting the management of such entities through those tenuous fledgling stages until profitable. These start-ups have been in areas where the GPI Investment Committee has had the ability to influence the investment decisions and in areas where risk has been well-contained. The more recent focus is on existing, more established, investment targets, characterised by potential for exceptional growth and historically healthy cash flows. Possible acquisitions are therefore benchmarked against well-set criteria.

There is no defined exit strategy in respect of any of its investments as GPI is, fundamentally, a long-term owner of businesses and is committed to partnering with these entities in their growth going forward – ideally seeking out investments with a long-term time horizon, and not speculating in securities, but realising profits when suitably justified by market conditions and good common sense. Where necessary, re-investment occurs in underlying assets, increasing interests to as meaningful a stake as possible.