NEW JSE LISTING
African Rainbow Capital Investments scoffs at critics
‘We’re cynical about [the critics] not actually wanting to support empowerment,’ says ARC Investments joint CEO Johan van der Merwe
The JSE’s newest listing, Patrice Motsepe’s African Rainbow Capital (ARC) Investments, has defended its fee structure and dismissed criticism that it is a cynical venture to make money out of black economic empowerment (BEE). "We’re cynical about [the critics] not actually wanting to support empowerment," said ARC Investments joint CEO Johan van der Merwe. Even if 49% of the now listed fund was "white money", if it "can be held to provide broader opportunities for an empowerment vehicle then why not?" the joint CEO said. "The money actually ends up in the hands of the shareholders and those are all black shareholders." Shares in ARC Investments closed at R8.30, after opening at R8.68 a share. The shares were priced at R8.50 ahead of the listing, reflecting the company’s net asset value of R8.5bn. Investment holding companies generally trade at a discount to their net asset value, and the price has attracted criticism. But Van der Merwe says "we believe that we’re listing at a 20% di...
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