First it was Phuthuma Nhleko, then Cyril Ramaphosa. Now Alexander Forbes’s love affair with high-profile black businessmen as its BEE partner continues with Patrice Motsepe.Motsepe is the chairman of African Rainbow Capital (ARC), which has bought 10% of Alexander Forbes Ltd.This is not the listed vehicle but a specially created holding company that excludes the UK and European businesses. The main UK asset is actuarial consultant LCP."We consider ourselves to be an Africa-focused group," says Forbes CEO Andrew Darfoor, and so does ARC."LCP is a good asset but non-core, so it is irrelevant to our new partnership with ARC."The good news for Forbes is that, unlike many other empowerment deals it could have concluded, there is no need for special-purpose vehicles or to wait several years to get paid.ARC is cash flush and happily wrote a cheque for R753m.Darfoor says Forbes is highly cash generative with negligible gearing, so it didn’t need the money urgently, but the new cash will for...
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