JSE-listed specialised financial services group Alexander Forbes Group’s shareholders on Friday approved African Rainbow Capital’s (ARC’s) acquisition of a 10% stake in its African operations for R753.45-million, with net proceeds of R678.1-million to be settled in cash.
The strategic empowerment deal was expected to enhance Alexander Forbes’ broad-based black economic empowerment credentials at the ownership level, the company said in an update to the market.
“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,” said Alexander Forbes CEO Andrew Darfoor.
The company’s largest shareholder, Mercer Africa, is said to have supported the investment.