Billionaire Patrice Motsepe moves to take 78% stake in South Africa’s retirement fund giant

Johannesburg – Billionaire Patrice Motsepe’s African Rainbow Capital (ARC) is set to tighten its grip on Alexforbes, South Africa’s largest standalone retirement-fund administrator, in a transaction that could lift its stake in the company to almost 78%.

According to Moneyweb, ARC AF Holdings, linked to Motsepe’s ARC, currently owns 49.88% of Alexforbes and plans to increase that holding to 77.94% as US financial-services giant Prudential Financial exits its investment.

The move involves Alexforbes buying back 372.8 million shares, representing about 28.69% of its issued shares, from New Veld, a 99%-owned Prudential subsidiary, for about R2.5 billion. ARC AF Holdings will separately acquire Prudential’s remaining 74.1 million shares.

Alexforbes said the share repurchase will be funded through available cash and external debt, including a R2.1 billion bridge loan. The transaction remains subject to shareholder and regulatory approvals.

If both transactions are completed, ARC AF Holdings will own 77.94% of Alexforbes, while Prudential will exit the company entirely.

Black-owned investment group

The proposed deal comes as Motsepe’s ARC continues to build its presence across South Africa’s financial-services sector. ARC describes itself as a black-owned investment group focused on financial services and diversified investments, while its parent, Ubuntu-Botho Investments, is Sanlam’s largest single shareholder by economic interest.

The development follows another significant transaction involving Motsepe-linked investments earlier this year. In March, Sanlam announced plans to invest R3.2 billion for a 25% economic interest in the diversified investment portfolio of the ARC Fund. Sanlam said the deal would deepen its strategic cooperation with ARC and expand its exposure to alternative investments.

The Financial Mail reported that Motsepe and Sanlam’s relationship dates back to 2004, when Ubuntu-Botho was established as the insurer’s empowerment partner.

For Alexforbes, the latest transaction would significantly concentrate ownership in ARC AF Holdings. The company’s share price rose sharply following the announcement, with Moneyweb reporting an intraday gain of as much as 9.4%.

The transaction still requires the necessary approvals, meaning the proposed 77.94% ownership has not yet been completed.