Our business model

How our investments are managed

Remgro has a few operating subsidiaries of which the material companies are RCL Foods Limited (listed), Siqalo Foods Proprietary Limited (unlisted), Wispeco Holdings Proprietary Limited (unlisted) and Capevin Holdings Proprietary Limited (unlisted). Remgro’s other investments comprise both listed and unlisted companies that are not controlled by Remgro and which are mostly associates and joint ventures due to the significant influence or joint control exercised by Remgro through board representation in those investee companies.

Notwithstanding the level of influence or control, Remgro has traditionally adopted a philosophy of decentralised management, which means that its investee companies have autonomous boards of directors and management structures, while Remgro exerts its influence through non-executive representation on the boards of these companies. As Remgro’s portfolio evolves towards more unlisted exposure, our management philosophy has become more dynamic, adapting to the requirements of investee companies. For instance, early-stage investments typically require closer involvement and, similarly, investees that are facing adverse market conditions or operational challenges, typically rely more heavily on Remgro’s input and partnership. While our default philosophy remains one of decentralised, empowered partnership, Remgro’s commitment of management resources is defined by the requirements of the portfolio at any point in time.

The Remgro Board believes that the aforementioned “fit for purpose” model is best suited to driving performance at the investee company level. The full realisation of this “fit for purpose” model is achieved by being a strategic shareholder partner that holds management to account on agreed strategies and targets and provides patient financial capital; managerial support through access to Remgro’s broad and diverse network. Remgro believes these components create an environment conducive for value-accretive corporate transactions and an environment within which investee companies can achieve their relevant growth strategies and targets.

In addition, Remgro has recently formalised the Remgro Collaboration Network, a group-wide initiative aimed at facilitating more networking, collaboration and information sharing opportunities for the benefit of the Group. The network seeks to aggregate information and experiences and facilitates knowledge sharing and collaboration across various functions across Remgro’s investee companies. Focus areas to date include human resources, corporate social investment, energy, ESG, innovation and technology, with additional opportunities for mutual value creation continually being explored.

Shareholder agreements are in place for Remgro’s associates and joint ventures where there are also other major shareholders involved. These agreements serve as a mechanism to protect Remgro’s rights as a shareholder and manage any associated risks. In terms of these agreements Remgro has decision-making involvement for a defined list of material matters of the businesses of these entities, such as the appointment or removal of directors, capital structure, business strategy, large capital expenditure and mergers, acquisitions and disposals.

Where Remgro does not have the right to board representation, such investments are classified as portfolio investments (investments at fair value through other comprehensive income).

As a responsible steward of its investee companies, Remgro leverages its influence to ensure that these entities adhere to high standards in areas such as governance, internal controls, financial and risk management, legal compliance, social responsibility, safety, health and environmental management, internal audit, ethics management, information management, stakeholder relationships, succession planning, and sustainability. To further advance our sustainability agenda, Remgro aims to assume a stewardship role with all its investee companies across their value chains. By promoting the adoption of Environmental, Social and Governance (ESG) principles, we seek to encourage sustainable behaviour and achieve shared sustainability goals.

As Remgro’s portfolio evolves towards more unlisted exposure, our management philosophy has become more dynamic, adapting to the requirements of investee companies.

Investment philosophy

Remgro’s investment strategy and investment criteria