African Rainbow Capital co-CEO, Johan van Zyl.
Gallo Images / Lisa Hnatowicz MEDIA 24
- African Rainbow Capital has supplemented its holdings in existing investments.
- It also acquired more than a third of one of Africa’s leading independent fintech platforms, Crossfin.
- But the company has sold a large chunk of its Afrimat shares and has divested its entire stake in MetroFibre.
It was a busy 2021 for Patrice Motsepe’s African Rainbow Capital (ARC), with the company spending R327 million on acquisitions in the second half of the year alone.
The investment holding company bought 37.33% of Crossfin – one of Africa’s leading independent fintech platforms – for R415 million.
This was the largest fintech deal in SA, valued at R1.5 billion. Private equity manager Ethos financed the rest of that transaction.
ARC also expanded its interests in existing companies and offered loans where needed.
ARC Financial Services injects an additional R257 million into TymeBank and TymeGlobal. It also invested another R83 million in Alexander Forbes. After that investment and profit of fair value of R86 million, the effective investment of ARC in Alexander Forbes went from R767 million on 30 June 2021 to R936 million on 31 December 2021.
Outside of financial services, the ARC Fund bought additional shares in phosphate miner Kropz Plc for R55 million. The Fund also provided an additional convertible loan of R200 million to Kropz Plc to help finance the operations at Elandsfontein until production begins and generates revenue. Kropz had raised only R127 million from it by the end of 2021, bringing the total invested by ARC in that company to R182 million.
ARC co-CEO Johan van Zyl said after some setbacks at the start of production, the Elandsfontein mine has started producing phosphate.
“We’re busy selling something. In the coming weeks, we’ll be delivering a few shipments, so we’re starting to make some money there,” says Van Zyl.
ARC also invested an additional R56 million in mobile data operator Rain. ARC’s shareholder in Rain has increased from R3.3 billion in June 2021 to R3.37 billion at the end of 2021 due to the extra investment and a fair value gain of R2 million.
ARC Investments invested R64 million in the ARCH Cold Chain Solutions East Africa Fund. The Fund was established to support the development, construction and operation of greenfield cold storage and distribution facilities in East Africa.
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Motsepe’s African Rainbow Capital closes MetroFibre investment, but bumps up other commitment
Source link Motsepe’s African Rainbow Capital closes MetroFibre investment, but bumps up other commitment