Billionaire Patrice Motsepe’s African Rainbow Capital Investments plans to improve cooperation between units through speed dating. (iStock)
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Patrice Motsepe’s African Rainbow Capital Investments plans to
improve cooperation between its different ventures by getting them to
know each other better – by dating.
ARC, as the company is known, has more than 40 investments spanning
asset management and life insurance to telecommunications and
agriculture. Started about a year ago by pooling together Motsepe’s
different interests, the company was set up to benefit from and support
South Africa’s drive to encourage black participation in an economy
still dominated by the white minority 24 years after racial segregation
To kick-start more partnerships between the companies it holds stakes
in and encourage more cross-selling, ARC will host a conference in
November where the different businesses can “speed date”, co-Chief
Johan van der Merwe said in an interview in Johannesburg on Thursday.
“Once we’ve made the connection, they can go back to their respective
companies” and discuss ways of teaming up, he said.
It’s already implementing the strategy of fostering cooperation with
its soon-to-be-launched TymeDigital Bank and data-only mobile-network
operator Rain, in which ARC owns 26.3%, Van der Merwe said. The
two companies are in talks to share a distribution network made up of
self-service kiosks at Pick n Pay Stores and the retailer’s Boxer
While the company would ideally like to launch TymeDigital this year,
it would depend on regulatory approvals before the end of this month,
he said. ARC agreed to buy Commonwealth Bank of Australia’s stake in the
business after the Sydney-based lender
reviewed its strategy.
The drive comes as ARC reports an 11% increase in its
net-asset value to R9.56bn for the 12 months
through June, its first set of results since listing its shares on the
Johannesburg Stock Exchange in September last year. The stock has
slumped 31% since.
The firm has ruled out a rights issue and would rather use debt to
leverage its portfolio of investments, Van der Merwe said. ARC has a R1.1bn investment pipeline.
New investments are taking longer than expected to nail down as parties mull over price and strategy, Van der Merwe said.
“They are quite sizable transactions and they are strategic
transactions,” he said. “There’s nothing wrong. It’s just taking longer
because everyone wants to make sure it’s right at the end of the day.”
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