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...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now