ARC bol­sters net as­sets, port­fo­lio value

Afro Voice (Free State) - - SPORT - THELMA NGOMA thel­man@the­newage.co.za

AFRICAN Rain­bow Cap­i­tal has re­ported that it has added a fur­ther R2,3bn in­vest­ment to its ARC Fund for the pe­riod ended De­cem­ber.

Since list­ing, the group com­prised a in­trin­sic port­fo­lio value of R4,4bn and cash and other net as­sets of at least R4,26bn.

African Rain­bow Cap­i­tal In­vest­ments Lim­ited (ARC In­vest­ments) listed on the JSE last on Septem­ber 7 last year and its over­rid­ing ob­jec­tive was to be a per­ma­nent cap­i­tal ve­hi­cle for in­vestors to in­vest in a broad-based black con­trolled en­tity with an un­der­ly­ing di­ver­si­fied port­fo­lio of in­vest­ments.

JSE lauded the list­ing and said at the time it was priv­i­leged to as­sist ARC In­vest­ments achieve its growth ob­jec­tive.

“The list­ing of ARC In­vest­ments rep­re­sents im­por­tant progress in the trans­for­ma­tion of the fi­nan­cial ser­vices sec­tor,” di­rec­tor for cap­i­tal mar­kets at the JSE, Donna Ne­mer said at the time of the list­ing,

“The JSE is proud to be able to aid in its growth through pro­vid­ing the com­pany with ac­cess to deep pools of cap­i­tal by means of a cred­i­ble, liq­uid and well-reg­u­lated plat­form.”

The ini­tial un­der­ly­ing in­vest­ment port­fo­lio in ARC In­vest­ments through its in­vest­ment in the ARC Fund com­prised of 100% of ARC’s in­ter­ests in its non-fi­nan­cial ser­vices port­fo­lio com­pa­nies and 49.9% of ARC’s in­ter­ests in its fi­nan­cial ser­vices port­fo­lio com­pa­nies

“By in­vest­ing in a broad range of sec­tors and through a va­ri­ety of types of listed and un­listed eq­uity, the ARC Fund gen­er­ally seeks to gain ex­po­sure to growth and early-ma­tu­rity stage busi­nesses in which man­age­ment teams are ap­pro­pri­ately in­cen­tivised”.

The group’s to­tal port­fo­lio value in­creased by 3,9% to R9bn at De­cem­ber 31, com­pris­ing in­trin­sic port­fo­lio value of R7bn and cash and other net as­sets of R1,99bn.

It said that in­vest­ments have gen­er­ally shown good fi­nan­cial per­for­mance and growth.

“The ARC Fund con­tin­ues to have a healthy deal flow pipeline”.

ARC In­vest­ments is a sub­sidiary of African Rain­bow Cap­i­tal which in turn is a wholly owned sub­sidiary of Ubun­tuBotho In­vest­ments.

ARC has made var­i­ous in­vest­ments since 2015 and has sold these in­vest­ments to ARC In­vest­ments as part of the list­ing process.

The com­pany has made more than 40 in­vest­ments in port­fo­lio com­pa­nies since its for­ma­tion in 2015 to the date of trans­fer to ARC In­vest­ments.”

Dur­ing this pe­riod, ARC ac­quired in­ter­ests in busi­nesses in spe­cific fi­nan­cial and non-fi­nan­cial in­dus­tries – with the ob­jec­tive and firm be­lief that em­pow­er­ment would en­hance the com­pet­i­tive­ness of the busi­ness.”

The group said that the slug­gish econ­omy has hit some of the fund’s port­fo­lio com­pa­nies but it was ex­pected these in­vest­ments would show im­proved per­for­mance in the sec­ond half of the re­port­ing pe­riod ow­ing to im­proved po­lit­i­cal land­scape and re­vised eco­nomic out­look for the coun­try in the medium term.

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