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NAV Per Share: ZAc 661 (as at 31 December 2016)

Pallinghurst Co-Investors

The Group’s Relationship With The Pallinghurst Co-Investors

The Group has an affiliation with certain other investors, known collectively as the “Pallinghurst Co-Investors” or as strategic equity partners. Pallinghurst Cayman acts as the investment manager for both the Group and the other Pallinghurst Co-Investors. The Group usually makes investments alongside the other Pallinghurst Co-Investors, although it may also act alone.

The Pallinghurst Co-Investors usually have the collective ability to control or exert significant influence over the investments in the Group’s Investment Portfolio. The Pallinghurst Co-Investors are able to cooperate to achieve the strategic objectives recommended by the Investment Manager.

The relationships between the Group and the other Pallinghurst Co-Investors enable the Group to take an active part in the management and strategic direction of each investment, which would not otherwise be possible (as the Group’s individual interests are below 50%). The Pallinghurst Co-Investors typically share the same commercial and strategic objectives and cooperate effectively, although each Pallinghurst Co-Investor retains legal title and influence over their individual shareholdings, and is ultimately able to determine its own course of action.

Further information on the other Pallinghurst Co-Investors is set out below:

AMCI Capital
www.amcicapital.com

AMCI Capital is a leading private equity house that specialises in global energy and resources investments, and employs some of the world’s leading energy and mining industry experts. AMCI Capital is a private equity fund of the AMCI Group. The AMCI Group is an active global investor in coal, iron ore, manganese ore, platinum, base metals, power, shipping, logistics and trading.

APG
www.apg.nl

Algemene Pensioen Groep (“APG”) is one of Europe’s largest pension funds. It carries out collective pension schemes for participants in the education, government and construction sectors, housing corporations and energy and utility companies. APG manages pension assets of approximately EUR443 billion (December 2016) for these sectors. APG provides for the income of around 4.5 million participants and looks after the pension of one in five families in the Netherlands.

ENERGY AND MINERALS GROUP
www.emgtx.com

The Energy and Minerals Group (“EMG”) is a US-based private equity fund with Regulatory Assets Under Management of US$14.7 billion in the energy and minerals sector. EMG enters into equity investments in entities with talented and experienced management teams, focussed on hard assets that are integral to existing and growing markets.

INVESTEC
www.investec.com

Investec Bank Limited (“Investec”) is an international banking group. Investec operates in three principal markets, the United Kingdom, South Africa and Australia, providing a diverse range of financial products and services.

POSCO
www.posco.com

POSCO is the largest steel producer in South Korea and the fifth largest producer in the world (based on 2015 steel output). POSCO owns and operates two major steel plants, Pohang and Gwangyang.

SMEDVIG/SOUTHERN PROSPECTING GROUP
www.smedvigcapital.com

The Smedvig family invests across a range of asset classes and has considerable experience in successfully investing in the natural resources sector globally. The Smedvig Family Office makes direct investments as a lead investor within property, private equity and thematically related investments, as well as investing with third party private equity funds.

TEMASEK
www.temasek.com.sg

Temasek is the Asia investment company headquartered in Singapore. Temasek invests in many areas, including resources with assets concentrated principally in Singapore, Asia and growth markets, with a portfolio valued at approximately SGD242 billion (March 2016).

Benefits of Co-Investors

  • A broader scope of investments can be contemplated as the Investment Manager can consider the level of funding on offer from all of the Pallinghurst Co-Investors rather than PRL alone.
  • This funding scope can make an approach by the Pallinghurst Co-Investors more attractive or credible to a potential target company or group than a stand-alone approach by the Group.
  • The Pallinghurst Co-Investors are able to exercise a greater level of influence or control over each investment than if they were acting alone.
  • The Group may be able to diversify by participating in a larger number of separate investments.

In addition, PRL is entitled to participate in a minimum of 20% of the combined Pallinghurst Co-Investor investment into an asset at the point of acquisition, subject to certain conditions. The other Pallinghurst Co-Investors do not benefit from any similar entitlements.