Motsepe's ARCI has spent R399m on acquisitions
ARCI said yesterday that it had injected R150m in the six months to end December through its ARCI Fund in TymeBank, a digital bank, that has more than 1.1million clients and 440000 active clients.
The bank is signing up between 3500 and 4000 customers a day and was well-positioned within the South African banking sector to implement its low-cost banking fee model as well as customer experience value propositions.
The group said it also spent R159m through its subsidiary ARCI FinHoldCo by acquiring a 25percent stake in specialist financial services group Capital Legacy, which specialises in the drafting of wills and estate administration.
However, ARCI FinHoldCo disposed of its shares in Santam for a total consideration of R120m and realised a profit R21m net of capital gains tax.
Its investment in Rain is set for a major lift after Rain launched 5G successfully during the period.
ARCI holds 20.7percent stake in Rain.
The group said Rain was aiming to become a full-service mobile network operator, focusing on data as a primary offering. The major assets constitute spectrum licences, including an allocation in the 1800 Megahertz (MHz) band as well as an allocation in the 2600 MHz band.
“Overall, the growth prospects for Rain remain optimistic. Revenue growth has been encouraging and significant progress is being made to further improve on network performance and stability. Rain is well positioned to become a major player in the 5G data market,” the group said.
The ARCI Fund investment in Rain increased from R2.51billion at the end of June to R2.71bn at the end of December, mainly as a result of a fair value write-up of R183m at the end of June compared to R364m during the period.
The ARCI Fund acquired an additional 0.2 percent shareholding in Rain for R21m during the period.
As a result, ARCI managed to grow its intrinsic portfolio value by 5.8percent to R9.90bn during the period.
Its intrinsic net asset value per share increased by 3.4 percent to R9.52 a share compared to R9.21 reported last year.
Looking ahead the group said a slow-down in the global economy is expected to have an unfavourable impact on the South African economy.
“Given the ARCI Fund’s diverse investment portfolio, it is expected that the fund will deliver a satisfactory performance,” the group said.
ARCI shares closed 10.77percent higher at R2.16 on the JSE yesterday.