Our business model

How our investments are managed

Remgro has a few operating subsidiaries of which the material companies are RCL Foods Limited (listed), Rainbow Chicken Limited (listed), Siqalo Foods Proprietary Limited (unlisted), Wispeco Holdings Proprietary Limited (unlisted) and Capevin Holdings Proprietary Limited (unlisted). Remgro’s other material 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, our default management philosophy remains one of decentralised, empowered partnership with Remgro’s commitment of management resources defined by the requirements of the portfolio at any point in time. This means that the 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 continues its portfolio optimisation efforts, 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. Partnership with investee companies to drive performance continues to be a strategic imperative for Remgro, underpinned by this dynamic management philosophy.

The Remgro Board believes that the aforementioned “fit for purpose” model is best suited to driving performance at the investee company level. The full impact of this dynamic model is achieved by being a shareholder partner that holds management to account on agreed strategies and targets, provides patient financial capital; strategic support and access to resources and expertise through Remgro’s broad and diverse network. Remgro believes these components create an environment within which investee companies can achieve their organic and inorganic growth strategies and build long-term value for all stakeholders.

In addition, Remgro has 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, ESG, innovation and technology, with additional opportunities for leveraging groupwide perspectives 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 decisionmaking involvement for a defined list of material matters of the businesses of these entities, typically including items 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.

As a responsible steward of its investee companies, Remgro leverages its influence to ensure that these entities adhere to high standards and best practice 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. With respect to our sustainability agenda in particular, Remgro assumes a stewardship role in promoting the adoption of best practice Environmental, Social and Governance (ESG) principles in order to achieve shared sustainability goals across the Group.

Investment philosophy

Remgro’s investment strategy and investment criteria