“We’re looking at companies with unique technology. We’re looking at companies that are not in a start-up phase but have already proven themselves and companies where we can add value through resources and the eco-system,” African Dawn Capital’s (Afdawn) executive chairman Marc van der Merwe told CNBC Africa.
“We’ve done a thorough investigation over the past six months, since the announcement of the change of vision, and we have a nice pipeline line-up. I think from those companies there will be very attractive options.”
Afdawn, which was originally shaped as a micro finance company, will undergo its third corporate transformation in hopes of becoming an active investment holding company.
“When we talked about changing the company around, one of the first things that we’ve done is to bring new representatives on board. That was very important for us to bring capabilities at board level,” van der Merwe said.
“We plan to disinvest from Elite, which is the small loan business, and together with that we are bringing a lot of additional capabilities in the ecosystem, specifically for the entrepreneurial businesses.”
The company is expected to acquire shareholdings in entrepreneurial companies, with strong innovation drive, and enhance the capabilities of these entities to accelerate their long term sustainable growth.
“In the pipeline we started off with about 50 potential businesses and that’s down to 11. Most probably in the next six months we will invest in three,” van der Merwe added.
He also stressed the importance of remaining on the Johannesburg Stock Exchange (JSE) because it opens up new doors for the company.
“Staying on the JSE gives you opportunity – if you really do your bit, the market will hopefully acknowledge what we’re doing. The recapitalisation at this stage, doing a rights issue, changing the brand of the company [is] mostly for the purpose of getting the company back on track as an attractive investment vehicle.”