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Quarterly investment update
African Rainbow Capital Investments Limited
(Incorporated in the Republic of Mauritius)
(Registration number C148430)
JSE share code: AIL
ISIN: MU0553S00000
(“AIL” or “the Company” or “ARC Investments”)
QUARTERLY INVESTMENT UPDATE
African Rainbow Capital Investments Limited (“ARC Investments”) was listed on the JSE in September
2017. ARC Investments is a Limited Partner in an en-commandite partnership ARC Fund Partnership
SA (“ARC Fund”).
As indicated at listing, ARC Investments has undertaken, in addition to its six and twelve-monthly
reporting, to also give quarterly feedback on progress. The purpose of this announcement is to provide
shareholders with a high-level update of the Company’s progress since its financial results
announcement for the year ended 30 June 2018, released on the Stock Exchange News Service on 13
September 2018. This feedback firstly covers the quarter ended30 September 2018 and then also
briefly deals with material events post 30 September 2018.
During the quarter under review, the ARC Fund invested approximately R239 million, in line with the
Company’s building block approach, and had cash of approximately R1.3 billion available for future
investments at 30 September 2018.
First quarter to 30 September 2018
RAIN
RAIN is making good progress in the execution of its strategy and is meeting implementation targets
pertaining to the roll out of its equipment on towers in terms of its agreement with Vodacom.
BKB
The arbitration regarding the potential disposal of the ARC Fund’s interest in BKB to Acorn Agri and
Food was heard during September 2018. The arbitrator ruled that the ARC Fund must issue a notice
of first refusal to BKB, whereby BKB would be entitled to acquire the shares at R22 per share by no
later than 27 December 2018.
Fledge Capital
Naspers announced on 18 September 2018 that its e-commerce and classified unit OLX Group had
acquired a 60 % interest in the specialised car buying service, We Buy Cars, from Fledge Capital and
others for an amount of R1.4 billion. Fledge retains an 8% equity interest (30 June – 31.5%) in We Buy
Cars.
Rand Mutual Holdings
The Rand Mutual Holdings (“RMH”) transaction became unconditional, after, inter alia, the approval
from the Prudential Authority of the South African Reserve Bank. African Rainbow Capital Financial
Services Holdings Proprietary Limited (“ARC FinHoldCo”) which is 49.9% held by the ARC Fund,
acquired a 30% equity interest in RMH.
Transactions post 30 September 2018
TymeBank
ARC FinHoldCo obtained approval from the Prudential Authority of the South African Reserve Bank to
acquire 90% of TymeDigital by Commonwealth Bank SA (now called TymeBank) on 1 November 2018.
This is in addition to the 10% that it previously held in TymeBank.
Sanlam Limited
Sanlam Limited (“Sanlam”), African Rainbow Capital Proprietary Limited and ARC FinHoldCo have
reached an in-principle agreement, subject to the conclusion of definitive agreements, to enter into
transactions regarding Sanlam’s Third-Party Asset Management, the formation of a new Black
managed life insurance company, African Rainbow Life and Sanlam investing in ARC FinHoldco.
Full details of these transactions are disclosed in a circular to Sanlam shareholders who will decide
whether they support these transactions at an extraordinary shareholders meeting to be held on 12
December 2018.The transactions are also subject to regulatory approval.
Kropz Elandsfontein
The ARC Fund held an effective interest of 26% in Kropz Elandsfontein as at 30 June 2018.
Kropz Plc, which owns 74% of Kropz Elandsfontein, listed on the Alternative Investment Market of the
London Stock Exchange on 30 November 2018. In addition, Kropz Plc has an effective 88% interest in
the Cominco phosphate project in the Republic of Congo.
The ARC Fund subscribed for an amount of $32 million in the listing and effectively owns 47% of Kropz
Plc. The ARC Fund has entered into an arrangement to ensure that it effectively controls 50.5% of the
voting shares of Kropz Plc.
Full details of the listing of Kropz Plc are available in the Admission Document which formed part of
the listing of Kropz Plc.
Sufficient funds were raised during the listing to provide financing of Kropz Elandsfontein until
commissioning which is planned for the first quarter of 2020.
Disclaimer
The financial information on which this announcement is based, has not been reviewed and reported
on by the Company’s external auditors. The Company will be reporting in more detail on its
performance after finalisation of its interim results for the six months ending 31 December 2018.
Ebène, Mauritius (with simultaneous circulation in Johannesburg)
7 December 2018
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Conference call
A conference call for analysts, investors and the media will take place at 11:00 (South African time)
today. Please register as indicated below.
Audio dial-in facility
A toll-free dial-in facility will be available. Please register at http://www.diamondpass.net/2793531
Recorded playback will be available for three days after the conference call.
For further information on African Rainbow Capital Investments, please visit our website at
www.arci.mu
For further information please contact:
JSE Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Tel: + +27 11 282 8231
Company Secretary
Tel: +230 403 0800
Date: 07/12/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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