Anuva Investments take on majority shareholding in Cape Mohair
Anuva Investments, one of South Africa’s leading 12J venture capital companies, have increased their stake in Cape Mohair from 46% to 69% by way of an additional capital investment of R10million. A further R5million in loan capital has also been allocated to purchase new machinery which will go a long way to increasing and improving production and enable the company to upskill and employ more staff.
Neill Hobbs, CEO of Anuva Investments, explains that, via their Equity Fund, the aim of Anuva is to facilitate the growth of small- and medium-sized enterprises in South Africa that show potential for growth and expansion. “Cape Mohair entered our radar in 2018 and we made the strategic decision to invest at a time when they needed it most,” he explains.
By providing both financial and management resources and support, Anuva were able to help Cape Mohair withstand the Covid storm, retain all their employees, maintain production and output, and increase shareholder value. Hobbs says their decision to increase the shareholding in Cape Mohair will further these successes for the business.
Established in 1991and based in Cape Town, Cape Mohair is a proudly South African manufacturer of mohair socks. Their range includes medical, outdoor, workwear and leisure socks. “We are proud to manufacture a product that is not just technologically advanced but also creates jobs, supports local farming communities and treads lightly on the earth,” says Johan Gouws, CEO of Cape Mohair.
Commenting on the deal, Gouws believes that Anuva’s investment into Cape Mohair has given their team the necessary breathing space to manage the day-to-day running of the business more effectively and has created a platform for them to be more strategic in their decision making, taking their business to the next level. “With their continued support and with the purchase of new machinery we have been able to increase our production capacity and product line, and, most critically, create more job opportunities,” he explains. Plans are afoot for additional brand extensions.
While Anuva remain committed to investing in SMMEs and building a portfolio of companies that create jobs, their focus for now will be on developing and growing the companies they are already invested in, namely Biodelta, NuMobile, Sexy Socks, Mastercare and ARA, with a view to sustaining employment, improving profitability, promoting positive cash flows, and delivering robust returns to their investors.