LICENCE PENDING
African Rainbow buys 20% stake in planned A2X exchange
Patrice Motsepe’s African Rainbow Capital (ARC) is getting behind aspirant stock exchange A2X Markets through the acquisition of a 20% share. The transaction allowed ARC to increase its share to 25%, conditional upon A2X securing its exchange licence, the companies said on Tuesday. ARC is a fully black-owned and controlled investment company with stakes in various financial services businesses. A2X hoped to secure its stock exchange licence in the next month or two, said CEO Kevin Brady. It would be operational by the end of 2017 and was in talks with 10 to 15 "quality issuers", Brady said. A2X was targeting the 50 to 65 largest and most liquid stocks on the JSE, to which it would provide a platform for secondary listings. A2X was actively trying to break the JSE’s "long-standing monopoly" and would introduce primary listings in time, he said. Competition would improve the liquidity and quality of the market via better price formation, Brady said. He said ARC’s investment imparted a...
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