African Rainbow Capital (ARC), the investment vehicle founded by South African billionaire Patrice Motsepe, has reportedly acquired a 49% stake in Sinayo Securities, a leading black-owned stock-brokering firm, for an undisclosed amount.
According to a report by Independent Online, Sinayo will use the new capital injection to expand its institutional client base and its brokerage services.
“We believe that this partnership will unlock opportunities for our business. ARC will enhance our service offering as it brings a depth of financial services experiences and industry relationships that will be of benefit to our business and its clients,” Babalwa Ngonyama, CEO of Sinayo, said.
The deal is ARC’s fourth acquisition for the year. In September, the company acquired an 18.36% stake in public listed Afrimat, a Johannesburg Stock Exchange-listed open pit mining company providing industrial minerals and construction materials. Earlier in June, ARC bought a 20% stake in luxury residential real estate company Val de Vie while in July it paid for a 29.9% interest stake in independent banking advisory firm Bravura. Only last month, the company paid a little over $5 million for a 10% stake in financial services company Alexander Forbes.
African Rainbow Capital (ARC) is a fully black owned investment company focusing on the South African businesses that deliver exceptional returns on equity. ARC’s current portfolio includes an insurance broker, a fibre provider and a healthcare provider.