ARC Investments’ net intrinsic asset value increases to R9.08bn
AFRICAN Rainbow Capital (ARC) Investments has said that its total net intrinsic asset value increased 3.9 percent to R9.08 billion during the six months to December.
The company said in its maiden results yesterday that the value consisted of intrinsic portfolio value of R7.09bn and cash and other net assets of R1.99bn.
The company listed in September last year.
ARC Investments holds a diversified portfolio worth R4.5bn in various sectors of the economy, including financial services, information technology and communication, agriculture and food production, energy, construction, real estate and industrial.
The company said it wanted to be a permanent capital vehicle for investments in a broad-based black-controlled entity with an underlying portfolio of diversified, high-quality investments.
It said its investments had generally shown good financial performance and growth. But some of its investments had been affected by the sluggish economy.
As a result, its intrinsic NAV per share increased slight to R8.75 a share after dilution, up from R8.46 a share at listing.
ARC Investments is a subsidiary of African Rainbow Capital, with a majority shareholding of 51.6 percent, which, in turn, is a wholly owned subsidiary of Ubuntu-Botho Investments.
ARC Investments is incorporated and managed in Mauritius and holds a category one global business licence issued by the Financial Services Commission of Mauritius. Its board boasts executives from South Africa, Mauritius, the UK and
Uncertainty The group said the sluggish economy had impacted negatively with some of the companies in its portfolio, as they traded in a slowed economy, low investor and business confidence, political uncertainty, increasing commodity prices and increasing fuel prices.
“These unfavourable economic conditions have negatively affected the performance of some of the investments.
“It is expected that these investments will show improved performance in the second half of the reporting period owing to the improved political landscape and revised economic outlook for the country in the medium term,” the group said.
ARC Investments’ share price reacted positively to the results, gaining more than 6 percent in early trade yesterday, reaching a peak of R6.30 a share for the day. The share closed 5.42 percent higher at R6.22.