DURBAN – Patrice Motsepe’s African Rainbow Capital Investments (ARCI) blamed the poor South African economy for missing its targets for the year to end June as it grew its intrinsic net asset value (INAV) by 2.4 percent – below the medium-to long-term expectations of 16 percent a year. Its INAV only increased to to R9.34 a share, marginally up from R9.12 last year.
“The poor performance of the economy resulted from several political and economic factors and is expected to continue over the short to medium term. Our investee companies generally experienced low consumer, business and investor confidence, which was exacerbated by political and policy uncertainty before and after the May national elections,” the JSE-listed investment holding company said.
ARCI is owned by mining magnate Patrice Motsepe and has stakes in Alexander Forbes and Sanlam. However, the group managed to achieve some positive developments during the year.
Its subsidiary, African Rainbow Capital Financial Services Holdings (ARC FinHoldCo), increased its holding in TymeBank to 100 percent in November.
ARC FinHoldCo acquired the 90 percent stake previously held by Commonwealth Bank of Australia and its ARC Fund contributed R240 million for its effective 49.9 percent share of capital injections into the bank.