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African Rainbow Capital to acquire 25% of Moloto Capital Investments

20th September 2018

By: Marleny Arnoldi

Deputy Editor Online

     

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Investment holding company African Rainbow Capital (ARC) Investments has subscribed for a 25%interest in black-owned and women-controlled investment company Moloto Capital Investments, which is focused on driving empowerment in the industrial and manufacturing sectors in the country.

The transaction is in line with ARC’s strategy to develop partnerships with enterprises that can expand its footprint in nonfinancial services businesses.

Moloto, on the other hand, seeks to acquire controlling stakes in growth companies with defensible competitive advantages in fast-moving consumer goods, manufacturing, agribusiness and corporate and industrial services.

ARC currently has limited to no representation in these sectors and will, therefore, be ideally positioned to benefit directly from Moloto’s participation in these sectors.

“Moloto is an ideal partner offering ARC a scalable platform to access attractive medium-sized opportunities in specific sectors. Theirs is a particularly compelling value proposition to their prospective partners and they have achieved significant momentum as a black industrialist investor over a short period of time.

Moloto is an active investor and acts as a catalyst to unlock economic value, as well as transform key industries,” commented ARC co-CEO Dr Johan van Zyl.

Additionally, Moloto selectively invests in high-potential companies with strong management teams where there is significant opportunity for job creation, empowerment and localisation, foreign exchange generation and innovation.

It targets medium-sized companies as its core focus for making investments, while ARC Fund continues to acquire significant minority stakes in large-cap companies.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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