TIISETSO MOTSOENENG: ARC’s turnaround a wise and welcome move
Decision not to use rights fund to pay fees to another division of the company will please investors
30 September 2020 - 20:29
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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