Rand Merchant Investment Holdings Limited (“RMI”) is a JSE Limited listed investment holding company with investments of 25.0% in Discovery Limited (“Discovery”), 25.4% in MMI Holdings Limited (“MMI”), 87.7% in OUTsurance Holdings Limited (“OUTsurance”), 100% in RMI Investment Managers Proprietary Limited and 100% in AlphaCode Proprietary Limited in South Africa and 29.9% in Hastings Group Holdings plc in the UK.
RMI does not have operational involvement in its portfolio companies and the transformation and black economic empowerment strategies are the responsibility of the management and boards of these companies. As a major and value-adding shareholder, RMI encourages levels of transformation across its portfolio companies consistent with the spirit and principles of the Broad-based Black Economic Empowerment Act (B-BBEE Act) and the Financial Sector Charter (FSC).
RMI’s South African listed investee companies have all obtained individual verified empowerment ratings reports in terms of section 13G (2) of the B-BBEE Act (B-BBEE Reports). These B-BBEE Reports are disclosed on the respective investee company websites, as required by section 16.20(g) of the JSE Limited Listings Requirements.
RMI is a Level 6 contributor to B-BBEE as at 30 June 2017, as verified by Mosela and SizweNtsalubaGobodo Rating Agency for reporting in terms of section 13G (2). The rating should be evaluated against the background of RMI’s income consisting mostly of dividend income from its underlying portfolio companies which is paid out to RMI’s shareholders after considering tax, funding and other holding company costs. RMI has limited operational capacity at the holding company and therefore a limited expense base. The income received by RMI has already been subject to B-BBEE requirements and measurement at the underlying portfolio company level and certain elements of the scorecard will therefore not be met in a meaningful manner by RMI.