Preference shares will offer competitive returns plus social impact

R4.5 million already committed

Ditikeni is seeking R100 million to invest in new BEE deals. Being a fully empowered and broad-based investment holding company, Ditikeni is well-placed to find and execute BEE investment deals which are not available to the ordinary investor.

The track record is there to see: 21 BEE investments in our portfolio and an outstanding return of 36% p.a. for ten years to our broad-based shareholders. What's different about Ditikeni is that our beneficiaries are 100% genuine broad-based organisations which carry out grassroots development programmes throughout the nation. This means there's a meaningful social impact from everything we do.

The Ditikeni Series II Preference Shares offer

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The term is seven years. The profit share is calculated on investments made from the Preference Share capital.

Want to learn more?
Click here for the Term Sheet. Or e-mail our investment advisor Gordon Young at gordonyoung@ditikeni.co.za.

This offers closes on 30 June 2011. The minimum investment is R1 million.

Earn Enterprise Development points under the BEE Codes by investing in Ditikeni Preference Shares

Companies requiring Enterprise Development points now have a competitive option: an investment in Ditikeni Preference Shares. As a certified 98% black-owned and 59% black women-owned entity, Ditikeni confers full value in terms of Enterprise Development points when companies purchase our Preference Shares.

At 3% of profits, the Enterprise Development section of the Codes could be a costly exercise. But with an investment in Ditikeni Preference Shares, it's different. There will be a competitive dividend rate linked to prime, and at the end of the term you'll have your capital returned to you with a profit share.

We'll naturally supply you or your ratings agency with all the necessary documentation to verify your claim of up to 15 points out of 15.

See the Term Sheet for more about this innovative investment instrument.

An investment in managed healthcare services by a broad-based empowerment investment company makes it part of efforts to provide quality healthcare to South Africans who cannot afford medical aid.

With the transaction broad-based empowerment company Ditikeni has acquired an interest in the CareCross Group, the low-income healthcare specialists.

Ditikeni Investment Company is a 100% broad-based BEE investment company which represents 19 non-profit community development organisations. Ditikeni has been investing for 10 years and now has 20 companies in its BEE portfolio.

The CareCross Group provides managed healthcare services particularly to low-income earners. It also owns Akacia Pharma (previously Thebe Medicare), a manufacturer of generic medicines. Turnover of the CareCross group now exceeds R800 million annually.

Ditikeni has owned a stake in the CareCross subsidiary for occupational healthcare, OCSA, for a number of years. Ditikeni owns 26% of OCSA. The CareCross transaction involves 1.83% of the company, sold to Ditikeni by existing shareholders for cash.

Dr Reinder Nauta, CareCross CEO, says that the CareCross Group is already significantly empowered at shareholder level, but welcomed the opportunity to enhance its BEE profile by forging an association with Ditikeni. “We largely service the lower end of the market, where Ditikeni’s own constituency lies, so this is a good fit. Low income earners struggle to find affordable healthcare services - they can’t afford standard medical aid schemes, but aspire to better services than can be provided by the public facilities. CareCross fills the gap.”

He added that Ditikeni is well known to CareCross through their joint holding in OCSA. “Ditikeni is represented on the OCSA board and its representative, Dr Sybil Seoka, plays an important role in OCSA’s marketing initiatives. We have been very happy with Ditikeni’s role at OCSA, so we were supportive of their wish to become shareholders of the parent company CareCross.”

Ditikeni chairperson Sahra Ryklief said that CareCross’s rapid growth had been observed by Ditikeni over many years. “Healthcare needs innovation and new approaches if it is to become more accessible to the majority of South Africans who cannot afford standard medical aid. We are looking forward to being part of these new strategies through CareCross. The role CareCross could play in the government’s planned National Health Insurance (NHI) is of particular significance.”

Ditikeni is a 100% broad-based investment holding company which undertakes BEE transactions on behalf of its 19 shareholders, all of them NGOs. This ensures that the benefits of BEE flow through to needy black communities throughout the country. Ditikeni has delivered a return of 36% per annum to its NGOs over the past ten years (IRR basis).