Motsepe’s ARC in Talks to Buy Unidentified Money Manager

African Rainbow Capital Investments Ltd is in advanced talks to complete a deal in the South African asset- management industry that could be worth about 800 million rand ($54.8 million).

The Johannesburg-based firm has 49 investments spanning banking and insurance to telecommunications and agriculture and sees financial services as a particular growth area, co-Chief Executive Officer Johan van der Merwe said by phone Thursday. ARC, as the company is known, is backed by billionaire Patrice Motsepe.

ARC’s aim is to develop a financial unit where its ventures benefit from each others’ client pools and distribution channels, the co-CEO said. The due diligence process on the potential deal is ongoing, he said.

ARC owns a stake in insurance and retirement-services provider Alexander Forbes Group Holdings Ltd. It also has an interest in mobile-network operator Rain and owns TymeBank, a newcomer targeting South Africa’s under-banked population.

“There is a big asset-management market out there,” Van der Merwe said. “People might say there are some competing businesses in there but while we believe there may be some overlaps it is not competing 100%,” he said. “We see Alexander Forbes as a more diversified business.”

Niche insurers and payment platforms are also potential targets for ARC, Van der Merwe said. An announcement could be made by the end of the year, he said. Source: Bloomberg