Understandably, investors struggled to comprehend African Rainbow Capital Investments’ (ARC Investments) decision to launch a rights issue when the company’s shares are languishing more than 60% below the value of its underlying assets.

But perhaps what angered them was the idea of the company’s leadership team to use a third of the R750m proceeds to pay outstanding fees to UBI General Partner — a division of Patrice Motsepe’s Ubuntu-Botho — for its day-to-day management of a fund that houses ARC Investments’ underlying assets...

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