THE G SPOT
Haters gonna hate (African Rainbow Capital)
Patrice Motsepe’s empowerment investment vehicle has been unpopular since coming to market in 2015. Now, a plan to raise R750m at R5 a share has drawn further market ire
You could say African Rainbow Capital has been deeply unpopular since coming to market in 2015. Yet the company’s major investments include potentially lucrative assets such as rain, TymeBank and phosphate group Kropz, and it has smaller holdings in Capital Legacy and GoSolr. Its latest announcement was a R750m rights offer to shore up capital, at R5 a share — which has drawn derision from the market, partly given the company’s stated intrinsic NAV of R11.41 a share.
The FM spoke to executive director Johan van der Merwe...
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