Shareholders of Alexander Forbes Group Holdings, have 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, Alexander Forbes’ 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.
