The three most enduring empowerment companies listed on the JSE — Brimstone Investment Corp,* Grand Parade Investments (GPI) and African Equity Empowerment Investments (AEEI) — have much in common. All three were launched in Cape Town in the 1990s, and have outlasted more illustrious Gauteng-based empowerment conglomerates like New Africa Investments, Real Africa Holdings and Mvelaphanda. All three have sprawling community-based shareholders, which explains the determination to maintain a sustainable dividend policy, with cash flows generated from a diversified investment portfolio. The founding directors remain key and large shareholders in the respective companies — and to an extent still inform investment perceptions around the companies. But the key commonality between these empowerment companies is that all three attract a huge discount on the intrinsic value of their respective portfolios. Of course, it is not unusual for investment companies — including larger counters like R...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now