Patrice Motsepe's Arc Investments To Re-domicile To South Africa After Buyout

ARC Investments plans to buy out remaining shares, delist from JSE and A2X, and re-domicile to South Africa to streamline operations.

The R9.75 0.538 per share buyout offers a 12.6 premium but is 22.8 below ARC Investments net asset value, sparking shareholder concerns.

ARC SPV, controlling 48.82 of ARC Investments, has secured funding for the buyout, with final approvals expected by mid-2025.

African Rainbow Capital Investments ARC Investments, the investment holding company led by South African billionaire Patrice Motsepe, is making a major strategic shift. The company has announced plans to buy out all remaining shares, delist from the Johannesburg Stock Exchange JSE and A2X Markets, and re-domicile to South Africa. The move is aimed at consolidating control, unlocking shareholder value, and streamlining operations.

ARC and its special-purpose vehicle ARC SPV have proposed a R9.75 0.538 per share buyout for all outstanding ARC Investments ARCI shares. The offer represents a 12.6 percent premium over the last closing price of R8.66 0.478 and a 21 percent premium over the 30-day volume-weighted average price VWAP of R8.06 0.44. However, it falls 22.8 percent below ARCIs net asset value NAV, raising concerns about whether shareholders are getting fair compensation.

Regulatory and shareholder approvals will determine the deals fate. If cleared, ARCI will delist and become fully registered in South Africa. ARC has pointed to a low public float, limited foreign investment, and tax inefficiencies in Mauritius as key reasons for the shift. The goal is to increase value realization, tighten governance, and better align operations with ARCs South African investments.

ARC SPV currently holds 48.82 percent of ARCI, while Motsepes Ubuntu-Botho Investments UBI indirectly controls 60.51 percent. After the buyout, UBI will maintain its stake, ensuring continued leadership and strategic direction.

ARC SPV and ARC have confirmed they have sufficient funding in place, eliminating financing risks. Since UBI will retain control, no merger approvals are required. Shareholders will vote on the delisting and re-domiciliation, following both Mauritian and South African regulations. BDO Corporate Finance has been appointed to provide an independent fairness opinion, and final approvals are expected by mid-2025.