OWN STAKE IN KFC FOR ONLY E1 050

MBABANE – Do you want to have shares in a company which owns a stake worth over E20 million in KFC? Now you know where to go!

Inala Capital, which was listed on the Eswatini Stock Exchange (ESE), has availed its shares for sale at E1.05 per share to any interested investor, which could be bought in multiples of 1 000.
This effectively means to you can own shares at the company, which invested E22.5 million for 27.3 per cent of Alliance Foods (Pty) Limited, that acquired 100 per cent of specified assets of seven Pimenta’s KFC (Pty) Ltd at the beginning of last month from as little as E1 050.

To date, the investment holding company incorporated on November 1, 2017 has managed to raise over E63 million from the targeted E100 million to build its investment portfolio focused on wealth creation, service provision and economic enablement.
The total shares, which are up for grabs, stand at E35 million, according to African Alliance Private Equity Executive Peace Mabuza.

Asked why investors ought to consider buying Inala Capital shares, Mabuza explained that the company has listed shares therefore providing liquidity optionality. He said the company also provides a single entry point and investment vehicle for emaSwati to obtain privileged access to agriculture-focused private equity transactions.

“All assets in the portfolio are held at fair value and the valuation of unlisted investments are audited by an independent big four auditor and reviewed by the company’s own auditors; and it’s a vehicle that allows for the efficient use of capital through on-balance sheet and portfolio gearing where necessary,” Mabuza clarified.

Returns

In terms of the expected returns, Mabuza explained that Inala would target growth in Net Asset Value (NAV) per share in excess of 10 per cent per annum (CAGR) over any three-year period.
“Depending on available cash and subject to financial prudence, the intention is for Inala Capital to pay dividends when possible.  Ultimately, however, it will be at the discretion of the Board of Inala Capital to pay out dividends from profits under and in terms of the Companies Act,” Mabuza clarified. 

Inala was the second private equity fund to be listed on the ESE by African Alliance after Greystone Partners.
The main purpose of Inala Capital was to create a listed investment vehicle, which provides investors with attractive long-term returns.
Mabuza mentioned that Inala Capital invests primarily in a diversified portfolio of unlisted privately-owned businesses in the agriculture, food production and food retailing sectors.

“Inala Capital’s investments will be identified by African Alliance, as investment manager, which has a proven track record of delivering high investment returns in the long-term,” said Mabuza.
When further probed as to why Inala was raising capital, Mabuza said the company sought to offer its shareholders an opportunity to make a direct and proactive contribution to Eswatini’s economic growth and development, and to participate in the process of creating wealth.

“The main rationale for the capital raise is to increase Inala’s reserves and therefore ability to execute on its investment pipeline. Inala is currently assessing transactions in excess of E100 million and therefore requires capital to execute on these transactions,” added Mabuza.

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