African Rainbow Capital Investments (ARC Investments), the investment firm led by South African billionaire Patrice Motsepe, is moving to consolidate control of Alexander Forbes Group Holdings, as its investment arm reaches an agreement that will see U.S. financial-services giant

Prudential Financial exit the South African retirement and financial-services company.

ARC AF Holdings (RF) Pty Ltd., an investment vehicle linked to Motsepe’s African Rainbow Capital (ARC), will increase its stake in Alexander Forbes to 77.94% from 49.88% through a combination of a share buyback by the company and a direct acquisition of shares from Prudential.

The transaction values the stake being acquired by Alexander Forbes and ARC at R2.5 billion ($153.31 million), while the company’s shares climbed as much as 9.4% following the announcement before paring gains. Its market capitalisation stood at R9.4 billion ($580 million).

Prudential exits Alexander Forbes investment

Prudential entered Alexander Forbes in 2022 through New Veld LLC, a 99%-owned subsidiary that currently holds a 34.39% stake in the South African financial-services group.

Under the proposed transaction, Alexander Forbes will repurchase 372.8 million shares from New Veld for approximately R2.5 billion.

Separately, ARC will acquire New Veld’s remaining 74.1 million Alexander Forbes shares directly, further increasing Motsepe’s exposure to the business. The transaction remains subject to customary conditions, including shareholder approval of the share repurchase.

ARC deepens financial-services strategy

The Alexander Forbes transaction adds to ARC’s growing exposure to financial services and fintech, a sector the investment group identified as a strategic area for increased investment.

ARC already holds interests in major African financial-services businesses, including Sanlam, one of the continent’s largest insurers, and Tyme Group, the digital banking company with operations in South Africa and the Philippines.

The increased Alexander Forbes stake therefore gives Motsepe’s investment platform greater control of a business deeply embedded in South Africa’s retirement and financial-services market.

Alexander Forbes funds share repurchase
Founded in 2015 as a subsidiary of Ubuntu-Botho Investments, the vehicle Patrice Motsepe created in 2004 to expand Black-controlled capital in South Africa, African Rainbow Capital (ARC) has broadened its investment portfolio. Alexander Forbes will finance the share repurchase using a combination of existing cash resources and a R2.1 billion ($128.83 million) loan.

The structure allows Prudential to unwind its investment while giving ARC a path to significantly increase its ownership without acquiring the entire Prudential position directly.

For Patrice Motsepe, the transaction further concentrates ARC’s holdings around financial services, an industry that remains central to its broader African investment strategy.

For Alexander Forbes, the deal represents a significant change in its shareholder structure, with ARC emerging as the controlling shareholder as Prudential prepares to end its investment in the company.