Patrice Motsepe’s firm to aquire Alexander Forbes’ majority shares

Patrice Motsepe's African Rainbow Capital (ARC) confirmed it has reached agreement to acquire 33.9% of the Alexander Forbes Group

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The South African mining mogul is about to become the new majority shareholder at Alexander Forbes, with plans to buy over R1bn of the pension fund administrator’s shares.

The billionaire’s investment holding company, African Rainbow Capital (ARC), will increase its shareholding in Alexander Forbes to 33.9% after Mercer Africa pulls out, the firm said in a joint statement on Wednesday.

As part of the proposed new shareholding agreement, ARC will acquire 193 million Alexander Forbes shares, or 15%, from Mercer at a price of 525 cents per share, amounting to 1,013 billion rand ($69.71 million).

Currently the second-biggest investor in the Alexander Forbes with a 13.7% stake, ARC is the majority shareholder of TymeBank, making it the first majority black-owned retail bank in South Africa.

ARC also holds significant stakes in telecoms operator Rain, Santam and Afrocentric, including the unlisted subsidiary, Alexander Forbes Limited. 

Motsepe, who became a billionaire in 2008, thus becoming the first black African on the Forbes list, is the president and owner of the Mamelodi Sundowns Football Club.

In November 2019, he became an equal majority shareholder of the Blue Bulls, South Africa’s best performing rugby team, with a 37% equity stake. 

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