A firm linked to South African billionaire Patrice Motsepe is set to significantly increase its ownership of Alexander Forbes, marking another major development in South Africa’s financial-services sector.
ARC AF Holdings, an investment vehicle linked to Motsepe’s African Rainbow Capital, is expected to increase its stake in Alexander Forbes from 49.88% to 77.94%. The transaction forms part of a deal that will see United States-based financial-services giant Prudential Financial exit its investment in the company.
Prudential Financial to Exit Alexander Forbes Investment
Prudential Financial’s exit is at the centre of the proposed transaction. The American financial-services group holds its interest in Alexander Forbes through New Veld LLC, a subsidiary that is approximately 99% owned by Prudential.
Under the agreement, Alexander Forbes will repurchase approximately 372.8 million shares from New Veld for around R2.5 billion. Separately, ARC AF Holdings will acquire approximately 74.1 million additional shares from New Veld.
Once both transactions are completed, New Veld will no longer hold shares in Alexander Forbes, while ARC AF Holdings will hold approximately 77.94% of the company.
How the Share Buyback Changes ARC’s Ownership
The proposed increase in ownership is not based solely on ARC purchasing shares directly. A major part of the change will come from Alexander Forbes buying back and cancelling a large number of its own shares.
When a company repurchases and cancels shares, the total number of shares in circulation decreases. As a result, shareholders who retain their shares can see their percentage ownership increase, even if they do not purchase the same number of additional shares themselves.
In this case, Alexander Forbes’ repurchase of 372.8 million shares is expected to play a significant role in increasing ARC AF Holdings’ ownership percentage. ARC will also directly purchase the remaining 74.1 million shares held by New Veld.
Alexander Forbes to Use Cash and Borrowing for the Deal
Alexander Forbes is expected to finance the share repurchase through a combination of existing cash resources and a loan of approximately R2.1 billion.
The proposed buyback is therefore not simply an ownership transfer between two investors. It also represents a significant financial transaction for Alexander Forbes itself, as the company will use its balance sheet to repurchase a substantial number of shares.
The transaction remains subject to several conditions, including shareholder approval for the specific share repurchase, regulatory approvals and other customary closing requirements. According to Prudential Financial, the transactions are expected to close during the first half of 2027, provided the relevant conditions are satisfied.
What the Deal Means for African Rainbow Capital
The proposed transaction strengthens African Rainbow Capital’s position within South Africa’s financial-services landscape. ARC has developed a portfolio with exposure to businesses operating across financial services, insurance, banking and investment-related industries.
Its interests include Alexander Forbes, Sanlam and Tyme Group. These investments reflect ARC’s broader focus on financial services and opportunities connected to South Africa and the wider African market.
Increasing its stake in Alexander Forbes to 77.94% would give ARC AF Holdings a significantly larger ownership position in the company. The development also comes as financial-services businesses continue to attract attention from investors seeking exposure to retirement administration, insurance, investment management and digital banking.
Why Alexander Forbes Matters in South Africa’s Financial Sector
Alexander Forbes is one of South Africa’s major financial-services companies, with a long-standing presence in retirement-fund administration and related services. Its operations connect the business to employers, employees, retirement funds and other stakeholders across the country.
Changes in the company’s ownership structure can therefore attract attention beyond its shareholders. Investors, clients and industry participants may follow the transaction to understand how the company’s future strategy, governance arrangements and capital structure could develop.
However, the proposed deal does not mean that all changes will take place immediately. The transaction still requires the necessary approvals and must satisfy the conditions outlined in the agreements.
Prudential’s Broader Investment Strategy
Prudential Financial’s departure from Alexander Forbes forms part of a broader strategy to narrow its geographic footprint and focus its resources on markets where it sees stronger long-term opportunities.
The company has described the Alexander Forbes transaction as another step in its strategy to exit selected emerging-market investments. Prudential is expected to continue supporting Alexander Forbes and relevant stakeholders through the completion process.
For Alexander Forbes, the departure of Prudential would bring an end to the American company’s investment in the business. For ARC, meanwhile, the transaction would create a more concentrated ownership structure around one of South Africa’s established financial-services companies.
A Significant Development for South African Business
The proposed increase in ARC AF Holdings’ stake in Alexander Forbes represents a notable development in South Africa’s corporate and investment landscape.
By combining a direct acquisition of shares with a major company-led buyback, the transaction is expected to increase ARC’s ownership from 49.88% to 77.94%. At the same time, Prudential Financial will exit its investment, subject to the completion of the required conditions.
The deal will now be closely watched by shareholders, regulators and stakeholders as Alexander Forbes moves through the approval process. Its eventual completion could mark a new chapter in the company’s ownership structure and ARC’s expanding presence in the financial-services sector.
Developing business story. The proposed transaction remains subject to shareholder and regulatory approvals.
Source: Prudential Financial, Alexander Forbes disclosures and financial-news reporting.
