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Investment (ad hoc, minimum two meetings)
Members and attendees
Number of meetings
GD Harlow (C)
KM Ellerine
DR Hilewitz
BM Levy
MS Levy
JS Mthimunye
DA Suntup
EC de Villiers*
3
Member attendance
95%
(C)
Chairman.
*
Attendee.
Key objective and terms of reference (TOR)
f
Reviewing acquisitions, investments and disposals made within the Executive Committee’s mandate.
f
Reviewing, considering and approving proposed acquisitions, investments and disposals of the Group recommended by
the Executive Committee ranging between R40 million and R100 million per transaction.
f
Reviewing, considering and recommending to the Board acquisitions and investments of the Group above R100 million.
f
Annually review the performance of each investment and acquisition made.
The Investment Committee concluded that it has fulfilled its responsibilities in accordance with its terms of reference.
2017 Focus areas and activities
Blue Label’s strategy is to grow its businesses organically and to enhance its competitive advantage and offering to its
customers through strategic acquisitions. All new investments which are considered have to be motivated by alignment
with Group objectives, strategic focus and they have to enhance future profitability. Among the considerations are the
requirements that the future returns exceed Blue Label’s weighted average cost of capital (WACC), enhance Blue Label’s
service and product offerings or complement existing ones, attract new skills and management and offer synergy benefits.
The main challenge is that Blue Label operates in a rapidly developing and highly competitive market where the customer
is “king”. Acquisitions need to be strongly motivated to the investment committee to meet these challenges.
Past acquisitions over the previous four years are reviewed annually in terms of actual performance compared to budget and
whether they met the criteria set when they were initially approved by the Investment Committee. Any sub-performance is
analysed in full to assist the committee in shaping its criteria for future acquisitions as well as advising management on
corrective steps to be taken.
In August 2017 the Cell C and 3G acquisitions were implemented.
2018 Focus areas
As the Group is in the expansion phase of its development, further acquisitions are being pursued and appraised and are
likely to continue in the next financial year.
A challenge for the committee will always be to look at ways of retaining the entrepreneurial management teams that come
with these acquisitions through our long-term share plan.
BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
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