African Rainbow Capital Investments (ARC Investments), an investment holding outfit backed by Patrice Motsepe, caved in to investor pressure over plans to use a third of a proposed R750m rights offer to pay fund management fees, saying the plan is now off the table.

In a statement on Friday, after the company received a barrage of criticism for doling out cash to settle outstanding fees to UBI General Partner for day–to-day management of a fund that houses ARC Investments’ underlying businesses, the company said it had abandoned plans to use R205m from the share sale to pay the fund manager.

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