Six33 Group manages its investments on a decentralised basis and its involvement is mainly focused on the provision of support rather than on being involved in the day-to-day management of business units of investees. The Six33 Group considers it in the best interest of all the parties concerned to respect the decentralised business model and the fact that these businesses are conducted in separate legal entities. The support provided to the investee companies can either be in the form of strategic, financial and managerial support, or the creating of an environment for corporate transactions.
It should be emphasised that the above management philosophy is applied to all investee companies, irrespective of the level of influence that can be exercised.
SIX33 Group has operating subsidiaries. Due to its philosophy of decentralised management, the companies have autonomous boards of directors and management structures and Six33 Group only exerts its influence through representation on the boards of these companies.
The other investments, mostly associates and joint ventures, are influenced by the joint control exercised by Six33 Group through its board representation in those investee companies.
Shareholder agreements are in place for Six33 Group’s associates and joint ventures where there are also other major shareholders involved. These agreements protect its rights as shareholder and manage risks. In terms of these agreements Six33 Group has decision-making involvement for a defined list of material matters of the businesses of these entities, such as the appointment or removal of directors, capital structure, business strategy, large capital expenditure and mergers, acquisitions and disposals.
As a responsible shareholder of the investee companies, Six33 Group also exercises its shareholder rights to ensure, as far as possible, that the entities concerned adhere to its requirements in respect of matters such as governance, internal controls, financial management, risk management, legal compliance, safety, health and environmental management, ethics management, information management, stakeholder relationships, succession planning and sustainability.
Six33 Group invests in businesses that are at the early stage of its business cycle, but holds promise to deliver acceptable earnings, cash flow generation and dividend growth over the long term. This involves the acquisition of meaningful interests in companies in order to have significant influence.
Six33 Group focuses on the Southern African market, but international opportunities will be considered with reputable partners. Six33 Group forges strategic alliances on a partnership basis and endeavours to add value where possible. The purpose is to add value to the continent and its people whilst ensuring acceptable returns to shareholders by way of sustainable dividend and capital growth.
The abovementioned is done under the shadow of the overarching principle that Six33 Group first and foremost invests into people and not merely their ventures.