PSG CAPITAL FEATURE

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P S G C A P I T A L

2 www.southafricamag.com

Johan Holtzhausen, the Managing Director of boutique corporate finance company PSG Capital, talks to South Africa Magazine.By Ian Armitage

boostJohan Holtzhausen, the Managing Director of boutique corporate finance company PSG Capital,

boostgrowthUNLOCKING AFRICA’S POT ENT IAL TO

P eople often ask what corporate fi nance is. Its defi nition varies considerably across

the world but it tends to be associated with transactions in which capital is raised in order to create, develop, grow or acquire businesses.

PSG Capital is the boutique corporate fi nance division of PSG Group Limited and it provides a complete suite of corporate fi nance and advisory services to a broad spectrum of public and private clients.

“We have a successful track record in supporting and growing companies,” explains Managing Director Johan Holtzhausen. “We understand the individual nature of advice and work closely with management teams to help them develop and deliver their objectives.”PSG Capital, he says, supports growing companies in all sectors. Each client

PSG Capital FEATURE

requires advice according to their individual needs and the fi rm works closely with management teams to help them develop and deliver their objectives. It is a trusted advisor and sponsor.

“We provide a full range of services, including mergers and acquisitions, initial public offerings (IPOs), fundraisings, debt advisory, market intelligence, BEE transactions, privatisations, management buyouts/buy-ins and restructuring,” Holtzhausen,

who with a colleague helped establish PSG Capital some 14 years ago, says. “We started our business of providing value-added corporate fi nance advisory services in 1998. Today we provide a complete suite of corporate fi nance and advisory services.

“We have a formidable team.”

PSG Capital currently has 32 JSE and JSE AltX-listed clients,

3www.southafricamag.com

We provide a full range of services,

including mergers and

acquisitions, initial public offerings,

fundraisings, debt advisory

growth

A partnership which delivers the best returns

Partnering with Deloitte is probably the closest you will get to a sure thing. Our comprehensive solutions help clients maximise shareholder value, at every stage of a transaction. That’s something you can count on. www.deloitte.com/za

© 2011 Deloitte Global Services Limited


including Zeder Investments, Paladin Capital, Pioneer Foods, JD Group, mCubed, Capitec Bank, and DiamondCorp. Rather impressively, it was ranked third in the categories Sponsors Transaction Flow and Deal Flow at the 2010 Deal Makers General Corporate Finance Awards.

“We have a broad spectrum of clients including public and private companies, BEE and private equity houses, financial institutions, asset managers and hedge funds and we employ a team of highly skilled professionals,” Holtzhausen says. “The people aspect of our business is very important for us and we focus on attracting, developing and retaining the best talent for our business, challenging our people, demonstrating a “can-do” attitude and fostering a collaborative and mutually supportive environment.”

Why focus on people? Because it is they that are the face of the business and they who form lasting relationships: “Relationships matter,” Holtzhausen says. “They

PSG Capital FEATURE

We have a broad

spectrum of companies including

public and private

companies


For more information please contact:Michael van Wyk – Partner Phone: +27 (0) 21 427 5300 Direct +27 (0)21 427 [email protected] www.deloitte.com/za


Van Wyk believes that Deloitte’s recent decision to open an office in Stellenbosch will allow the firm to better service PSG. “We understand the importance of PSG’s work in the larger Boland market (in which Stellenbosch is situated) and are committed to continuing our drive to create value for their business.”

“The Boland region in the Western Cape of South Africa has been highlighted as an area expected to realise strong economic growth, with much of the region’s turnover coming from traditional agricultural and consumer business related industries, and now from financial services businesses, too,” says van Wyk. “However, during recent times the region has also attracted many technology companies, and this is an industry in which Deloitte has noteworthy credentials.” According to van Wyk, the mix of traditional (and very successful) organisations with strong, new generation businesses in the region, offers Deloitte a solid foundation for growth. “The opening of a Deloitte office in Stellenbosch (within the first quarter of 2012), will give us the opportunity to work closely with young and innovative companies and great established groups like PSG.”

In order to survive today’s tough business environment, firms offering financial services need to be more agile than in the past. This agility has seen the team at Deloitte greatly enhance its comprehensive Corporate Finance solutions, at every stage of a transaction.

According to Michael van Wyk, a Partner at Deloitte, “We foster a culture of agility to ensure that we continuously create value for our clients in this ever changing market.” It is this approach that has helped Deloitte establish a mutually beneficial relationship with PSG Capital (PSG). When working with companies such as PSG, we believe the key philosophy should be around a partnership and the development of a long-term relationship. Deloitte has enjoyed past experiences with PSG and we will continue to invest our time and people into building this relationship. In May this year, Deloitte partnered with PSG Capital on the rights offer for private schools holdings group Curro Holdings, valued at R322-million. Van Wyk says, “The PSG Capital team is made up of people you want to work with. They are an amazing team that gets things done without getting bogged down by the little things.”

Lwazi Bam, head of Corporate Finance and CEO designate of Deloitte Southern Africa says developing this type of partnering relationship allows his team to identify and realise greater value for their clients. “For us, this means offering comprehensive solutions in conjunction with other Deloitte services, using global best practice – an approach we are committed to following with PSG.”

A key PArtnerShiP to benefit the Boland and beyond

Artist’s impression of the reception area at Deloitte’s Stellenbosch office


who were a mixture of institutional and private investors.”

Blackstar SE successfully listed on 12th August 2011, he says.

“We understand that the essence of a successful corporate finance firm is delivering value-adding, lasting corporate finance solutions to its clients. We relentlessly focus on finding these solutions for our clients’ specific business needs with an aim to consistently

occur naturally within PSG Capital where clients are assured of unrelenting focus and commitment directed at each of their unique business needs, so as to provide innovative and customised corporate finance solutions. We deliver the results and the solutions.

“To give you an example, in July, we, together with the management team of Blackstar SE, conducted road show presentations around South Africa with the aim of raising over R100 million. In less than two weeks, during significant market volatility, that target was achieved from South African investors,

PSG Capital FEATURE

The greatest partnerships are based on trust and mutual respect and continue to grow from strength to strength through the years. We are proud to have been with PSG Capital since their formation. Our partnership has given us the opportunity to act as legal advisors to PSG Capital on many of the large corporate business transactions involving the PSG group of companies and their clients. We are honoured to stand by the side of this successful South African business.

Cliffe Dekker Hofmeyr

Relationships matter.

They occur naturally in PSG Capital

Johan Holtzhausen.

Managing Director


THE CORPORATE & COMMERCIAL LAW FIRM

JOHANNESBURG +27 (0)11 535 8000 CAPE TOWN +27 (0)21 405 5100 www.werksmans.com

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you want to hear – but we’ll give it to you anyway.

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angles, to serve your best interests, we’ll tell it like it is.

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We feel this is a partnership worth thinking about

Cliffe Dekker Hofmeyr is a business law firm and a member of DLA Piper Group, an alliance of legal practices.

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deliver value.“We are also dedicated

and have the willingness to take on big challenges and see them through. For example, it can be a long, lengthy process just to get through the regulatory environment anyway,” Holtzhausen explains.

Where will future opportunities lie for PSG Capital? The incoming chief executive of the JSE Nicky Newton-King said recently that the bourse was in talks with companies on the continent over more potential listings and that mining, telecommunications and financial services were among the key sectors the JSE was targeting in Africa.

“We’ve got good conversations going ... particularly on the continent,” Newton-King told Reuters ahead of briefing in parliament.

Initial public offerings (IPO) have tumbled globally since the 2008 financial crisis and the subsequent eurozone sovereign debt turmoil.

Holtzhausen shares her view.

“Mining is one area where I definitely see potential, across Africa,” he says. “I see potential in infrastructure too and obviously agriculture. Our group — PSG Group — reflects that. We, as PSG,

PSG Capital FEATURE

PSG CAPITALat a glance

MANAGING DIRECTOR: Johan Holtzhausen

DESCRIPTION: Boutique corporate finance company PARENT COMPANY: PSG Group Limited

CLIENTS: (include) Zeder Investments, Paladin Capital, Pioneer Foods, JD Group, mCubed, Capitec Bank, and DiamondCorp

Johan Holtzhausen, Managing Director, and his family


see Africa as a strong focus area. Going forward, we will centre on that. There are a lot of companies and investors interested in Africa and we are the gateway to it, given our expertise that we have already built up.”

Mr. Holtzhausen knows his stuff. He is a qualifi ed attorney and has been involved in corporate fi nance since 1995, having implemented various corporate fi nance transactions and listings since then.

“What are PSG Capital’s key strengths?” he concludes. “I have to stress that it comes down to dedication. We are selfl ess and have incredible focus and commitment. We’ve also got the might of PSG Group behind us.

“We are excited by the future. Africa is full of potential and we look forward to helping our clients fulfi l it by providing funding, advice and access to markets.

“There are lots of opportunities.” enD

I have to stress that it comes down to

dedication. We are selfless and have

incredible focus and commitment. We’ve also

got the might of PSG Group behind us


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PSG CAPITAL FEATURE

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