Efficient Engineering’s structure of ownership
The continued and unprecedented success of Efficient Engineering over the decades has drawn keen interest from a number of high profile investors during the company’s history. In order to effectively accelerate this growth, Efficient Engineering agreed to sell 26% of the company’s equity to investment expert, RMB Corvest, the private equity division of FirstRand Limited, in September 2009.
At the same time, Shalamuka Capital acquired 29% of Efficient Engineering. Shalamuka Capital is a BBBEE private equity company whose sole beneficiary is the Shalamuka Foundation. The purpose of the Foundation is to act solely as the funding provider for the highly-regarded Penreach School Development Programme, whose mission statement is: ‘To improve the quality and accessibility of education in disadvantaged communities’.
Shalamuka offers investment partners a key advantage through its status as a BBBEE private equity company, which uses its own funds for investment, rather than third party funds. This investment provides Efficient Engineering with a Level 4 BBBEE status. This ensures that all customers of Efficient Engineering are creating measurable and sustainable development that will benefit residents of underprivileged communities in years to come.
As a non-profit skills development programmethat supports qualified and unqualified educators in Mpumalanga and the surrounding areas, Penreach provides skills training to educators, daily visits to schools by experienced fieldworkers and tutorial workshops to mathematics and physical science learners. Founded in 1994, Penreach today reaches more than 2 000 educators from over 900 schools annually. It is estimated that 350 000 learners benefit each year as a result of Penreach.
Penreach’s upliftment of local communities via improvement in education has been recognised by a number of national awards.All beneficiaries of the programme are black South Africans, while least 94% are women and more than 50% are from rural communities.
RMB Corvest is focused on providing equity funding for management buyouts, leveraged buyouts, development capital and funded BEE solutions in mid-sized companies. For more on RMB Corvest’s investment philosophy please refer to: www.rmbcorvest.co.za
Efficient Engineering’s non-executive chairman Tony Cimato retains a 25% shareholding in the business, while the remaining 20% was offered to senior management as part of an internal buy-in – which ensures improved job security, in addition to increased loyalty to the Efficient Engineering brand. The management buy-in has also enabled the current leadership team to flourish in a corporate environment, where they have been exposed to new aspects and decision making responsibilities from within the business.
Efficient Engineering is proud to be involved in a strategic business partnership with RMB Corvest, as it is a highly respected investment company that specialises in assisting profitable organisations in reaching their full potential. Efficient Engineering as a company is confident that this investment will prove to be highly-beneficial to all parties involved, as potential for maximum growth and expansion is unlimited. What’s more, this capital injection ensures that Efficient Engineering has the necessary purchasing power for increased production, which will ultimately contribute towards the company’s goal of attaining an annual turnover of R1 billion in the longterm future.