Ditikeni raises R20m from Old Mutual & Metropolitan Asset Managers
11 September 2007 | People and Companies | News | Old Mutual & Metropolitan Asset Managers
Ditikeni raises R20m to invest on behalf of community organisationsDitikeni, the broad-based investment company set up in 1999 to take advantage of BEE transactions, announced today that it had received funding commitments of R20 million from external investors for the company to participate in transactions on behalf of its twenty two non-profit shareholders.
The R20 million commitments were raised in equal proportions from the Old Mutual Foundation and Metropolitan Asset Managers. In addition, the Ditikeni Trust which is associated with Ditikeni Investment Company has undertaken to co-invest to the extent of 10% of the total funding commitment or R2 million.
According to Ditikeni chairperson, Sahra Ryklief, the company is looking to raise another R30 million by 31 July 2008 through the issue of additional preference shares to new investors.
She says Ditikeni raised R2.8 million from shareholders in 2000 and 2002, and used this largely for working capital purposes. "To date, twenty transactions have been concluded and the maiden distribution to shareholders was made in June 2007."
Ditikenis twenty two shareholders are all non-profit organisations working in poor, black communities, where they undertake upliftment projects of various kinds. Over two million people live in these communities. Ditikeni's shareholders operate in two hundred localities nationwide, and in all nine provinces.
"Ditikeni focuses on genuine broad-based empowerment, empowering poor and mostly rural people to lift themselves out of poverty," says Ryklief. "Most Ditikeni shareholders have been operating for 25 years or more and have a fine record of service as well as accountability. Ditikeni is one of their chosen methods of seeking sustainability for their activities."
Peter De Beyer, chairman of the Old Mutual Foundation says that over the last year, Old Mutual has launched a number of bold and visionary initiatives designed to boost sustainable economic growth across all sectors of South African society. Old Mutual's participation in the Ditikeni preference share issue is another example of our deepening commitment to South Africas economic transformation."
Godfrey Albertyn, portfolio manager at Metropolitan Asset Managers says that: "at Metropolitan we believe that it is possible to achieve a good investment return while simultaneously delivering a good social dividend. We are invested in a number of projects that have done just that, and Ditikeni has the same potential."
