Patrice Motsepe’s African Rainbow Capital Investments (ARCI), which owns stakes in TymeBank and Rain, is planning to delist from the JSE and redomicile in South Africa.
In line with a press release to traders on Tuesday, the corporate has made a proposal to purchase again the shares it doesn’t personal, pursuant to its delisting. Following that, ARCI will probably be redomiciled from Mauritius to South Africa.
“Within the subsequent monetary 12 months, the board of administrators of ARCI will probably be assessing a delisting … whereas persevering with to deploy methods to slender the low cost to internet asset worth,” the corporate stated.
“The ARCI share value doesn’t replicate the true worth of the funding within the ARC Fund and trades at a reduction to the web asset worth of the ARC Fund, that means that traders in ARCI are usually not receiving the true worth of their funding. It’s anticipated that the [buyback] will end in a return of worth for traders.”
Beneath the plan, ARCI shareholders will probably be supplied R9.75/share in money. In line with ARCI, the provide value represents a premium of 12.6% to the R8.66/share value that the shares had been buying and selling at when the market closed on Friday, 14 March. The provide additionally represents a 21% premium on the R8.06/share 30-day volume-weighted common value.
To reap the benefits of the provide, shareholders should comply with and approve a board decision to delist ARCI from the JSE and A2X Markets. A deadline for the acceptance of the provide is but to be set, however a round detailing the share provide and the mechanics of its proposed re-domiciliation is being ready and will probably be shared with traders “in the end”.
Tax inefficiency
Whereas unlocking worth was given as the principle cause for the share buyback, ARC Investments additionally cited an underwhelming capability to draw international traders as the key cause for deciding to redomicile the corporate from Mauritius to South Africa.
ARCI stated that on the time of its itemizing that the rationale for incorporating in Mauritius was its business-friendly setting and the tax treaties Mauritius has to assist facilitate investments outdoors South Africa, if required by worldwide traders.
Learn: TymeBank’s huge progress plans: Q&A with CEO Karl Westvig
“This technique has not materialised to the extent anticipated. The fee to function and oversee the affairs and operations of ARCI in Mauritius has turn out to be more and more costly. As well as, adjustments to tax laws for the reason that ARCI itemizing, have resulted in tax inefficiency for South African-resident ARCI shareholders vis-à-vis the underlying South African investments,” stated the corporate. – © 2025 NewsCentral Media
Get breaking information from TechCentral on WhatsApp. Enroll right here.
Don’t miss:
Patrice Motsepe’s ARC values Rain at R25.9-billion in newest report
