NERPO Investments Limited (NerVest)

Company Background

NERPO Investments Limited (NerVest) is a public company established by the members of the Association in July 1998 with the intent to promote and gain access as an Emerging Black Company to the Commercial Red Meat Industry. NERPO establishment was one of the most important developments in the South African Red Meat Industry as the pioneers were the beleaguered black farmers who felt the need to build their capacity in the entire Red Meat and related industries.

NerVest was also established to take advantage of the Government supportive policy environment which recognizes the crucial role that black farmers should play in their respective industries in order to enhance the market economy which requires the active and meaningful participation of the previously disadvantaged communities.

Nature of Business

The main object of NERPO Investments Limited is trading and investment as principal in its widest form. 

Mission

NerVest shall seek to take advantage of attractive opportunities in selected developing markets and establish a multiregional business base concentrating on the entire Meat, Tourism and related industries.

Objectives

The following comprise the key objectives of NerVest:

•  Identify and acquire significant ownership in profitable enterprises operating in the Meat, Tourism and related industries;

•  Explore the acquisition of appropriate and profitable privatization and unbundling opportunities;

•  Seek joint venture partnerships with local and foreign investors involved in Meat, Tourism and related industries;

•  Ensure the widest possible ownership by members of the association in acquired companies;

•  actively support the training of staff, the upgrading of skills and capacity building of the workforce in acquired companies; and

•  to raise funds through the issues of shares, business loans and equity investments.

Company Prospects

The company has positioned itself with a view of broadening it’s ownership base and aims to draw new entrants into the mainstream of the entire commercial meat, game and tourism industries on a national and regional basis.

NerVest will actively canvass various corporations, government and other entities in the meat and tourism industries for outright purchase of business units, joint ventures with strategic equity partners, or outsourcing of non-core operations.

NerVest shall operate as an investment holding company and will derive its income solely from its wholly or partly owned subsidiaries.  Additional regional subsidiaries will be established as and when the need arises. The business of the Company’s subsidiaries shall be continuous enhancement of business activities with target sectors. The objective is to exploit the local, regional and international market opportunities presented by its products. 

Investment Philosophy

NerVest’s philosophy is to acquire the majority stake in business ventures or take significant strategic equity positions.

The company will explore business opportunities (in some instances in conjunction with other relevant parties) in the identification, evaluation, acquisition  and development of wealth creation opportunities for the employees and indirectly, the economy.

Modus operandi and investment criteria

The company will follow clear and disciplined investment policy criteria regarding target investments, including:

•  backing existing and/or profitable ventures;

•  seeking businesses with good growth potential over the long term;

•  demanding an experienced and capable management team; and

•  requiring a minimum investment return of 20% pa.

A detailed and comprehensive feasibility study, an achievable business plan and five year audited financials (where possible) must accompany each investment proposal made to the Investment Committee.