Patrice Motsepe’s ARC Investments falls short of targets
The group says the weak economy, a decline in the share prices of its listed investments and its bets in early-stage businesses affected its net asset value
Patrice Motsepe’s African Rainbow Capital Investments (ARC Investments) said its intrinsic net asset value edged up just 1% in the six months to end-December to R9.6bn, well below its medium-term target of 16% growth a year. The group said this was because of the weak economy, a decline in the share prices of its listed investments, and its bets in early-stage businesses such as network operator Rain and financial services start-up TymeBank. ARC Investments said its net profit in the interim period fell to R77m, from R462m a year before. While the value of its investment in Rain increased by 9% to R2.3bn, the group said it had been forced to write down the value of one of its business process outsourcing ventures, Bluespec, by R209m. The carrying value was reduced to R300m. Bluespec is focused on the short-term insurance value chain and luxury and exotic vehicle sales. ARC Investments said the business had been affected by the downturn in the motor industry, and lower insurance payo...
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