27 March 2017
After the formal launch of African Rainbow Capital (Arc) last year, the diversified black-owned financial services company intends to list an investment holding company on the Johannesburg Stock Exchange later this year, providing the public with an opportunity to participate in the growth and value creation of the company from a relatively early start.
Co-CEO of Arc, Johan van der Merwe, confirmed in an interview with Moneyweb that the listing of an investment holding company would probably happen by the third quarter of this year. The aim would be to hold majority stakes in a diverse array of non-financial services businesses. These would still be majority owned by Arc, and thus fully empowered, but would utilise public shareholders as substantial minority partners. “It will also hold a stake in the financial services business [Arc] we are creating. We want to keep the financial services separate because we think we can build a cohesive business,” said Van der Merwe. The idea is that the financial services business will be much more operational in nature that the investments included in the holding company.
The listing of the vehicle will represent the second holding company that billionaire entrepreneur Patrice Motsepe has taken to market, following the listing of ARMGold (the predecessor to African Rainbow Minerals) in 2002. More importantly, the listing will provide another tangible demonstration of Motsepe’s own vision of radical economic transformation.
Speaking at the launch of the property investment joint venture between Arc and Buffett KLT earlier this month, Motsepe repeated his desire to build a world-class business in financial services (in the same way he has in resources) that will allow those less fortunate in society to participate in and share the fruits of. His modus operandi involves partnering with management teams and entrepreneurs that he believes will be capable of delivering success.