ALEXANDER FORBES GROUP HOLDINGS LIMITED - Alexander Forbes shareholders approve investment by African Rainbow Capital as a strategic empowerment partner

Alexander Forbes shareholders approve investment by African Rainbow Capital as a strategic empowerment partner

ALEXANDER FORBES GROUP HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number: 2006/025226/06)
JSE Share Code: AFH
ISIN: ZAE000191516
(“Alexander Forbes” or “the Company”)


Alexander Forbes Press Release

ALEXANDER FORBES SHAREHOLDERS APPROVE INVESTMENT BY AFRICAN RAINBOW CAPITAL AS A
STRATEGIC EMPOWERMENT PARTNER

   -   African Rainbow Capital is acquiring 10% of wholly-owned subsidiary Alexander
       Forbes Limited (excluding all businesses outside of Africa) for net proceeds of
       R678 105 000 settled in cash.
   -   Investment in AFL accelerates Alexander Forbes’s vision to continue to build a
       globally distinctive pan-African financial services organisation.
   -   Investment enhances Alexander Forbes’s B-BBEE credentials at the ownership level.
   -   Mercer Africa Limited, Alexander Forbes’s largest shareholder, supports the
       investment by ARC.

Johannesburg, 20 January 2017 – Shareholders of Alexander Forbes Group Holdings
(AFGH) today approved a transaction announced in November 2016 introducing African
Rainbow Capital Proprietary Limited (ARC), a wholly-owned subsidiary of Ubuntu-Botho
Investments Proprietary Limited, as an empowerment shareholder.

ARC is investing in Alexander Forbes’s African operations by acquiring 10% of wholly-owned
subsidiary Alexander Forbes Limited (AFL) for net proceeds of R678 105 000 (post the
completion dividend) to be settled in cash. The total cash consideration of the transaction
amounts to R753 450 000.

Andrew A Darfoor, the Group Chief Executive, says the overwhelming support for the
transaction fully demonstrates that our shareholders believe in the strategic merit and
industrial logic of having ARC as a strategic investor to partner with the group in the delivery
of its ambition of building a leading pan-African financial services company.

In a circular sent to shareholders, Alexander Forbes says the group aims to leverage its
expertise in South Africa where appropriate to drive growth in the rest of the continent,
improve asset capture in the institutional business, continue to provide solutions to the
institutional member base and drive modernisation in the group’s technology environment.

”Going forward, the focus will be on conducting extensive market segmentation and research
to better enable us to create solutions that address our customer needs throughout their life
journey across retirement, financial planning, wealth creation and protection, and financial
risk management. This is the concept we stand behind in providing trusted advice to secure
our clients’ financial well-being,” says Darfoor.

Johan van Zyl, the co-CEO of ARC welcomed the approval of the transaction by Alexander
Forbes shareholders, describing it as a landmark investment by ARC which has a 10- to 20-
year vision to build a South African base and expand into the rest of Africa.

“For us, investing in Alexander Forbes is key to executing on that vision since the group is a
recognised market leader in South Africa and selected markets in Africa,” he says.
CONTACT INFORMATION

Alexander Forbes: Lynn Stevens, Chief Marketing Officer; stevensly@aforbes.co.za; +27 (0) 82 658
3408

Corporate Image

Sure Kamhunga, Account Director: sure@corporateimage.co.za; +27 (0) 83 5444 392

INFORMATION ON ALEXANDER FORBES

Alexander Forbes is a specialised financial services group headquartered in South Africa focusing on
employee benefits solutions for institutional clients, and financial well-being and retail financial solutions
for individual clients, in particular employees of the group’s institutional clients. Alexander Forbes is
listed on the Johannesburg Stock Exchange (“JSE”), and its primary clients span both the private and
public sector market segments, including employers, retirement, health, investment and other special
purpose funds on the institutional side, and individual members and beneficiaries of these funds, as
well as the wider individual market, on the retail side. The main services provided by the group include
retirement funds and asset consulting, actuarial, investment and administration services, employee risk
benefits and healthcare consulting, personal lines insurance, individual financial advisory and multi-
manager investment solutions. Alexander Forbes’ principal geographic focus is in South Africa, where
it has been operating since 1935, sub-Saharan Africa, the UK and other selected jurisdictions which
have employee benefits legislative frameworks similar to South Africa.

www.alexanderforbes.co.za

Johannesburg

20 January 2017

Corporate Advisor and Transaction Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd

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