African Lion
Summary
AFL (Lion – 29.8%)
| Total investment by Lion: | $0 million (after returns of $35 million) |
| Date of initial investment: | May 1999 |
| Area of activity: | Africa – Mining Investment |
| Website: | www.afl.co.za |
AFL2 (Lion 18.6%)
| Total investment by Lion: | $7.1 million ($7.6 million returned as at 30 June 2008) |
| Date of initial investment: | September 2004 |
| Area of activity: | Africa – Mining Investment |
| Website: | www.afl.co.za |
Company
African Lion (three unlisted investment funds – AFL, AFL2 and AFL3), managed out of Lion Selection’s Melbourne office, has performed extremely well. The aim of African Lion is to identify investments solely in Africa. Lion Selection is able to co-invest and benefit from the political risk and funding advantages delivered by the large international banks and development banks which are Lion Selection’s co-shareholders in African Lion. These co-shareholders include the European Investment Bank, Proparco (French Government), CDC Group plc (British) and Investec Bank Ltd.
Minimal co-investment between Lion Selection and African Lion took place from 1999 to 2007 due to PDF and other restrictions. One of the merger benefits to Lion Selection is the ability to recommence investment in African opportunities. This has commenced with a US$1 million investment in unlisted Copperbelt Minerals. This was a co-investment with African Lion.
One other important benefit to Lion Selection’s shareholders is the performance incentive it receives from the African Lion portfolio; this totalled $26 million at 31 July 2007.
The African Lion funds have performed strongly. The first fund, African Lion Limited (AFL), is now fully invested. The second fund, African Lion 2 Limited (AFL2), is also fully invested with a third fund, AFL3 commencing active investment in mid 2008.
Lion shareholders have direct exposure to both African Lion investment portfolios and their performance.