ALLAN SECCOMBE

MINEWORKERS Investment Company (MIC), which has investments in a broad range of companies, is looking to increase its exposure to listed firms and may announce a raft of deals this year, including consolidating positions in the groups it already owns.

The MIC, which pays dividends to the Mineworkers Investment Trust — a body set up by the National Union of Mineworkers and which is the sole shareholder in MIC — has a portfolio valued at R2,2bn for this financial year, which is an 80% improvement from a year earlier.

The intention was to grow the investment portfolio to R3bn over the next two to three years, MIC CEO Paul Nkuna said yesterday.

During the global financial crisis from the latter half of 2008, the value of the portfolio, which includes investments in the likes of FirstRand , Metrofile , Peermont Global and Primedia, dropped as low as R1bn, but the recovery has restored the portfolio’s health and allowed MIC to look for further growth, he said.

Mary Bomela, the executive director in charge of MIC’s strategy, said there was a desire in MIC to diversify its portfolio from its heavy weighting towards privately held companies, in which it was easier to take a large stake and have representation on the board. The key criteria for MIC are cash generation and dividend flows from its investments, allowing it to make its own dividend payments to the MIT.

“Listed companies are very attractive but for us to get in with a significant stake and to be influential is very difficult and it takes a long time to negotiate,” Ms Bomela said yesterday.

“We hope to conclude a minimum of two deals this financial year and continue our consolidation strategy with our existing portfolio.” Two sectors attracting MIC’s interest were healthcare and retail, with the latter being a mature industry and difficult to get into, she said.

The alternative energy sector was also promising, Mr Nkuna said, acknowledging it would require upfront capital before dividend flows might start in five years . MIC wants nothing less than 26% stakes in new investments to ensure it has a meaningful say on strategy and empowerment within its investments, Mr Nkuna said.

MIC holds 49,6% of Primedia, a privately held media group.

The company could be listed on the JSE “when the timing is right”, but this was not in the near future, said Mr Nkuna.