|Profit for the period lowered to R77 million (R462 million). Furthermore, headline earnings per share also tumbled to 7cps (96cps).|
The company's ability to pay dividends is a function of the return of capital by the ARC Fund, which is not anticipated in the short term and over which the company has no direct control. Furthermore, the current intention of the General Partner is that cash raised by the ARC Fund through realisations and distributions received from Portfolio Companies will generally be utilised for new investment opportunities.
If the company receives the proceeds of realisations or distributions by underlying Portfolio Companies from the ARC Fund and chooses to pay dividends, the Board anticipates declaring and paying a final dividend only. The Board may, however, resolve to declare and pay interim dividends on the ordinary shares. The payment of a dividend will be subject to the company's constitutional documents and applicable laws and regulations and the reasonably foreseeable obligations of the company and will require the approval of the Board. The dividends that are envisaged would primarily be paid from distributions received by the ARC Fund from the Portfolio Companies and proceeds arising from the disposal of underlying investments by the ARC Fund, that are distributed to the company as returns of capital by the ARC Fund.
|Shareholders are advised that Mr Anil Currimjee has been appointed as independent non-executive director to ARCInvest's board with effect from 11 March 2019. He will become the third Mauritian resident board member of the Company.|
|Shareholders are referred to the announcements released on the Stock Exchange News Service on 8 August 2018 and on 2 November 2018 regarding the acquisition of TymeDigital by ARC Investments' controlling shareholder, African Rainbow Capital.|
Shareholders are advised of an investor event to be hosted by ARC Investments today, 26 February 2019, on the progress with the roll-out of TymeBank.
The complete set of investor presentations can be accessed at www.arci.mu, immediately following release of this announcement.
|ARC Investments released a quarterly update on the Stock Exchange News Service on 7 December 2018, which, inter alia, explained the status of the anticipated disposal of ARC Fund Partnership SA's ("ARC Fund") interest in BKB to Acorn Agri - Food.|
In terms of the ruling by the arbitrator, the ARC Fund issued a notice of first refusal to BKB, whereby BKB would be entitled to acquire the BKB shares at R22 per share by no later than 27 December 2018. Shareholders are advised that BKB has exercised its right of first refusal and has acquired the BKB shares at R22 per share from the ARC Fund for a total consideration of R409.5 million. The consideration has been settled in full.
The ARC Fund acquired the BKB shares from African Rainbow Capital Investments Limited at the time of listing of ARC Investments for an amount of R220 million on 7 September 2017. The carrying value of the BKB shares amounted to R415 million as at 30 June 2018.
|At the first (1st) Annual General Meeting ("AGM") of the shareholders of ARC Investments held on 13 November 2018 all the ordinary and special resolutions proposed at the AGM were approved by the requisite majority of votes.|
|Further to the announcement released on the Stock Exchange News Service of the JSE Ltd. on 8 August 2018, ARCInvest today announces that its controlling shareholder African Rainbow Capital (ARC) has obtained approval from the Prudential Authority of the South African Reserve Bank to acquire 90% of TymeDigital by Commonwealth Bank SA ("TymeDigital"). |
The acquisition is to be effected through ARC?s 50.1% held subsidiary, ARC Financial Holding Company (FinHoldCo), following which FinHoldCo will become the 100% owner of TymeDigital. The ARC Fund, an en commandite partnership in which ARCInvest is a Ltd. partner, holds 49.9% of FinHoldCo.
TymeDigital is a registered South African bank with a strong fintech focus. It was previously majority owned by the Commonwealth Bank of Australia (CBA), a leading banking group in its core markets of Australia and New Zealand. FinHoldCo previously held a 10% shareholding in TymeDigital.
All necessary regulatory approvals for the acquisition have been obtained, including approval from the Competition Commission and the acquisition is therefore unconditional.
TymeDigital will change its name to TymeBank when it officially launches to the South African public.
|Shareholders are advised that the Company's Audited Annual Financial Statements, were posted on the company's website www.arci.mu (http://www.arci.mu/JOB015476_ARCI_IR_Ltd._AFS2018_v12a.pdf) today, 15 October 2018 and contain no changes to the Reviewed Financial Results which were announced on SENS on Thursday, 13 September 2018 nor to the Independent Auditor's Review report referenced therein. The Company's Integrated Annual Report incorporating a summary of the aforementioned Audited Annual Financial Statements for the year ended 30 June 2018 was also posted to shareholders today 15 October 2018 along with the below Annual General Meeting Notice and has also been made available on the Company's website www.arci.mu (http://www.arci.mu/ARCI_IR_Ltd._NOTICE%20OF%20AGM%202018_Final.pdf). |
Notice of AGM
Notice was given that the Annual General Meeting of the shareholders of ARC Investments will be held on Tuesday, 13 November 2018, at the Intercontinental Trust Ltd., New York Boardroom, Level 3, Alexander House, 35 Cybercity, Ebene, Mauritius, at 15:00 (UTC/GMT +4 hours). A South African satellite venue will be made available for all shareholders wishing to attend in South Africa via live video and audio link up to the Mauritius venue. The venue details are The Auditorium, Sanlam Offices, 11 Alice Lane Sandton, Johannesburg, South Africa; commencing at 13:00 (GMT +2 hours). The details of the video/audio link will be made available by the Company's Transfer Secretaries to all shareholders recorded on the notice record date.
|ARCInvest released their maiden final results, therefore there are no comparatives. Fair value movements on the investment in the ARC Fund at FVTPL came in at R794.7 million, profit for the period was recorded at R674.5 million, while headline earnings per ordinary share was 81 cents per share.|
|The following results are the company's maiden results since listing. Profit for the period came to R462.2 million, whilst headline earnings per share were 96cps.|
|Shareholders are advised that, owing to the nature of the business conducted by ArcInvest and its core strategic objective being to grow net asset value per share (?NAVPS?), the board of the company has decided to adopt NAVPS as the relevant performance measure for trading statement purposes for the interim period ended 31 December 2017 and going forward.|
As an investment entity, one of ArcInvest?s key business objectives is to deliver shareholders superior long-term capital appreciation by investing in a portfolio of public and privately owned investments at various stages of development. ArcInvest will not own a controlling interest in the majority of companies in which it invests.
Therefore, the sustainability of the NAVPS and growth thereon over a longer period of time is considered a more appropriate measurement of financial performance, in comparison to headline earnings per share and earnings per share.
ArcInvest undertakes to confirm the appropriateness of NAVPS as the performance measure annually in the annual financial statements.
Shareholders are further advised that the company?s interim results announcement will be released on SENS on or about Tuesday, 13 March 2018.
|ARCInvest was listed on the JSE on 7 September 2017. ARCInvest is a Limited Partner in the ARC Fund, an en-commandite partnership. Full details of the structure were disclosed in the Pre-Listing Statement published on 28 August 2017. |
Karabo Tshailane Nondumo has resigned as a non-executive director from the board of UBI General Partner (Pty) Ltd., the general partner of the ARC Fund, with effect from 6 November 2017.
|Sipho Abednego Nkosi has resigned as a non-executive director from the board of African Rainbow Capital Investments Ltd. with effect from 6 November 2017.|
Renosi Denise Mokate has been appointed as a non-executive director to the board of African Rainbow Capital Investments Ltd. with effect from 23 November 2017.
|African Rainbow Capital Investments Ltd. (ARC) is a South African registered investment holding company that seeks to utilise its empowerment credentials, balance sheet strength, the business track record of its leadership team and its brand to invest in financial services distribution businesses, to take strategic equity stakes in underlying financial services product providers and to acquire majority or significant minority interests in non-financial services businesses.|