Our Investment Approach

OIH takes a pragmatic approach in investing, it considers investments in projects or business concepts thate that are aligned with our values and purpose, with sound management teams, that have the potential to deliver superior earnings, sustainable cash flow generation and dividend growth over the long-term. OIH strategic alliances on a partnership/franchise/agency or any other approprate model that adds value to the specific project.

OUR INVESTMENT PORTFOLIO

0. Investment Criteria

• Investments in entities where OIH can identify sustainable value over the long term.
• Preference for unlisted investments.
• Emphasis on investments that deliver superior financial returns, whilst fostering a positive, measurable social and/or environmental impact.
• Investments that align with OIH’s values and purpose to create sustainable stakeholder value.
• Focus on Lesotho and regional investments through investee companies.
• Will consider investments in other countries on an opportunistic basis.

0.1 Investment Decisions

Our investment decisions are based on the following:

• Impactful investments.
• Expected return on investment in excess of OIHs internal minimum rate of return.
• Technical and feasibility merit.
• Economic merit.
• Viability of products and services and their lifecycles.
• Sount Corporate Governance structure .
• Barriers to entry .

2. Portfolio Management:

Diversification: The holding company builds a diversified investment portfolio to spread risk and enhance returns. This may involve investing in multiple companies across different sectors or geographic regions, as well as allocating capital to various asset classes such as stocks, bonds, real estate, private equity, and venture capital.

Active Management: Depending on the investment strategy, the holding company may actively manage its portfolio by monitoring performance, conducting regular reviews, and making adjustments to optimize returns. This could include buying or selling assets, restructuring investments, or reallocating capital based on market conditions and investment objectives.

3. Value Creation

Strategic Guidance: The holding company provides strategic guidance and support to its portfolio companies to enhance their performance and value. This may involve leveraging the holding company's industry expertise, network, and resources to help portfolio companies grow, innovate, and overcome challenges.

Operational Improvement: The holding company may work closely with portfolio company management teams to identify operational inefficiencies, implement best practices, and drive operational improvements. This could include streamlining processes, optimizing supply chains, or investing in technology upgrades.

Synergies and Collaboration: By fostering collaboration and synergies among portfolio companies, the holding company can create additional value. This may involve facilitating partnerships, cross-selling opportunities, or sharing resources and expertise to drive growth and innovation.

4. Risk Management:

Risk Mitigation: The holding company employs risk management strategies to mitigate potential downside risks associated with its investments. This could include diversification, hedging, insurance, and other risk mitigation techniques to protect shareholder value.

Monitoring and Oversight: The holding company maintains active oversight of its portfolio investments, continuously monitoring performance, financial health, and market conditions. This allows for timely identification of risks and proactive measures to address them.

5. Exit Strategies:

Value Realization: The holding company develops exit strategies to realize value from its investments and generate returns for its shareholders. This may involve selling equity stakes, divesting assets, executing initial public offerings (IPOs), or pursuing mergers and acquisitions (M&A) to unlock value.

Timing and Execution: The holding company carefully evaluates market conditions and timing for exits to maximize returns. It executes exit strategies through well-planned and coordinated transactions, ensuring optimal value realization for its investments.