CAPE TOWN - Alexander Forbes announced on Thursday that it had entered into agreements to introduce African Rainbow Capital (ARC), a wholly-owned subsidiary of Ubuntu-Botho Investments, as an empowerment shareholder.
The company said the deal with ARC, which is chaired by Patrice Motsepe, would further promote and support Alexander Forbes’ African business, in addition to improving the black economic empowerment ownership position of the group.
According to the statement, ARC would subscribe for 10 percent of Alexander Forbes’ African business, equating to 51.3 million ordinary par value shares, for a total cash consideration of R753.5 million.
ARC, a wholly-owned subsidiary of Ubuntu-Botho Investments, was created in 2004 to build black-controlled capital through being Sanlam Limited’s empowerment partner.
ARC, which has completed a number of transactions since its inception in 2015, aims to become a leading South African based pan-African financial services company that is black-owned and controlled.
The deal, which is subject to conditions including shareholder approval, is expected to be completed by the end of the year.
African News Agency