Press release 3 December 2009 – Business Day

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PALADIN ACQUIRES 20% HOLDING IN SPIRIT CAPITAL

Paladin Capital, the recently listed private equity investor, has wasted no time in making its first investment since its debut on the AltX in September this year.

Paladin announced today that it has acquired a 20% shareholding in Spirit Capital, an emerging industrial investment company with interests in the food, perspex, container, filing and aluminum industries.

Paladin Capital is an 80% held subsidiary of PSG Group and the group's preferred investment vehicle in industries other than financial services and agri businesses. The investment in Spirit Capital is in addition to an already diverse portfolio comprising of thirteen listed and unlisted investments, which includes significant stakes in CIC, Petmin, Erbacon and TopFix.

“Through the 25% stake held by Paladin Capital’s 49% associate Thembeka Capital, we’ve had a close relationship for some time with the Spirit founders. The investment provides us with additional exposure to a company with strong management, who has been especially successful in the leveraged buy-out space. Going forward, we believe that there will be closer cooperation to unlocking other mutual benefits,” Paladin CEO, Francois Swart, said.
 
Commenting on the transaction, Kevin Homann, co-founder of Spirit said, "We are proud to have an investor of Paladin's quality and reputation as an anchor shareholder. They have been a supporter of ours for a number of years and, together with Thembeka Capital, provide us with a stable and supportive shareholder base. It really does set the company up for big things going forward.”

Spirit's portfolio currently comprises interests in well known brands such as Perspex, Cerebos, Big Box Containers and Tidy Files.

“Our model is to invest in businesses with good brands and excellent management. The investment horizon we have in mind when making an investment is forever. Fortunately, it is an investment philosophy that is shared by both Thembeka and Paladin,” Homann said.

Paladin recently completed a successful rights issue, raising R150 million for new investments.

Swart said Paladin is currently evaluating a number of opportunities in the education industry and hopes to conclude a significant investment before the end of the financial year in February 2010.

The PSG Group has over the years proved it has a keen eye for value. The market shouldn't be surprised if Paladin's newest investment takes its fledgling steps towards AltX in the not too distant future.

Press release 3 December 2009 – Business Day

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