MOT­SEPE, BEARE WANT YOUR BUILD­INGS

CityPress - - Business -

R700 mil­lion in de­cent deals, then we will spend R700 mil­lion. If we get R6 bil­lion of ex­cel­lent deals, we will spend that in a year.” The ‘black Rem­gro’? “Maybe it sounds a lit­tle ar­ro­gant, but what [we] want to achieve is ba­si­cally a black Rem­gro,” said Van der Merwe.

“A big di­ver­si­fied in­vest­ment trust that is black em­pow­ered where we give the in­vestee com­pa­nies the BEE score­card.”

ARC is a prod­uct of San­lam’s 2004 BEE deal with Ubuntu-Botho In­vest­ments, of which Mot­sepe owns 55%.

The 10-year-deal ex­pired in 2014 and left Ubuntu with 14.5% of San­lam, now worth about R20 bil­lion.

ARC is the in­vest­ment com­pany cre­ated to in­vest that cap­i­tal and is wholly owned by Ubuntu.

ARC has two CEOs: Jo­han van Zyl, pre­vi­ously CEO of San­lam, and Jo­han van der Merwe, pre­vi­ously CEO of San­lam’s in­vest­ment busi­nesses.

“We bor­row against those shares to do all these trans­ac­tions, we have not sold a sin­gle share. We don’t in­tend to sell,” said Van der Merwe.

ARC has spent or com­mit­ted roughly R4 bil­lion since its launch a year ago.

This in­cludes the R500 mil­lion for the new prop­erty com­pany, R435 mil­lion spent on shares in con­struc­tion sup­plies com­pany Afrimat last year, about R700 mil­lion for Alexan­der Forbes shares and R300 mil­lion for shares in listed ser­vices com­pany EOH.

“Some trans­ac­tions are al­ready deep in the money,” said Van der Merwe.

“We bought Afrimat at be­tween R16 and R17 per share, it is trad­ing at R30 to­day so that’s over R300 mil­lion profit on that one.”

Van der Merwe is con­scious of how it looks when a ma­jor black-owned com­pany is run by two white men called Jo­han.

“We want to make money for the share­hold­ers and the share­hold­ers are black,” he said.

Even though Mot­sepe is the dom­i­nant share­holder, Van der Merwe points out that Mot­sepe is part of the so-called Giv­ing Pledge started by Bill Gates.

This means he will do­nate half of his in­come every year to char­i­ties for the rest of his life.

ARC’s other share­hold­ers in­clude a devel­op­ment trust and a va­ri­ety of broad-based black groups.

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