ARC offers loyal shareholders just part of what the company is worth for their shares

mylesillidge

mylesillidge

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Bad news for people who own shares in Rain and TymeBank parent

Loyal African Rainbow Capital Investments (ARC) shareholders, who backed the company when no one else would, are only offered part of what the company is worth for their shares.

ARC is an investment holding company founded by billionaire Patrice Motsepe, with a diversified portfolio of assets to deliver long-term capital growth.
 
Everybody believed the NAV was highly inflated and the companies weren't worth nearly as much both in potential and how they managed the companies and products. There was a big conflict of interest in this. Now they are crying because they aren't getting what management said they should.
 
MuterOfWorlds said:
Huh?
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ForceFate:

?
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The 'investors' (aka cANCer cadres) were all caught by Motsepe's 'lucrative' Ponzi scheme, which promised a diversified portfolio of assets to deliver long-term capital growth - meanwhile, shareholders, who backed the company when no one else would, are only offered part of what the company is worth for their shares.

Bernie Madoff would be proud of this achievement... 😛
 
Shareholders are being bought out at a premium to the current share price, which is higher than it's been historically.

They have nothing to complain about really. And as usual, investors who got in at R2,50 have done very well.
 
vigras rojara said:
Shareholders are being bought out at a premium to the current share price, which is higher than it's been historically.

They have nothing to complain about really. And as usual, investors who got in at R2,50 have done very well.
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From the original article:

The R9.75 per share offer puts ARCI’s delisting value at R14.8 billion, which represents a 11.7% premium to the 17 March closing market cap of R13.3 billion.

However, the offer is a significant discount to African Rainbow Capital Investments’ ARCIs intrinsic net asset value (INAV).

ARCI stated that the business has an intrinsic value of R12.78 per share, translating into a valuation of R19.4 billion.

ARCI’s INAV increased by R2.5 billion in the past year from R16.9 billion to R19.4 billion. Rain’s intrinsic valuation increased by R2.75 billion to R25.9 billion, making it the biggest contributor.

This means that the offer to shareholders, which translates into a valuation of R14.8 billion, is 23.7% lower than the INAV.

Simply put, although the offer to shareholders is higher than its share price, it is a significant discount to the company’s INAV.
 
vigras rojara said:
Shareholders are being bought out at a premium to the current share price, which is higher than it's been historically.

They have nothing to complain about really. And as usual, investors who got in at R2,50 have done very well.
Click to expand...
Yet they were charged the management fee on the NAV.

Management were quite happy to value the company high when their fee depended on it but when it suits them they are suddenly valuing it quite a bit lower.

This taking it private is really just hiding the fact that they have ripped off investors by charging an inflated management fee.

The offer here might be fair. But then the management fee wasn't.

Either way somebody is getting ripped off.
 
HAL 9000 said:
The 'investors' (aka cANCer cadres) were all caught by Motsepe's 'lucrative' Ponzi scheme, which promised a diversified portfolio of assets to deliver long-term capital growth - meanwhile, shareholders, who backed the company when no one else would, are only offered part of what the company is worth for their shares.

Bernie Madoff would be proud of this achievement... 😛
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What are you on about? You don't make sense. Is this post driven by the fact that the business was founded by Motsepe or is there a rational reason why you'd post something like this?
 
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Johand said:
Yet they were charged the management fee on the NAV.

Management were quite happy to value the company high when their fee depended on it but when it suits them they are suddenly valuing it quite a bit lower.

This taking it private is really just hiding the fact that they have ripped off investors by charging an inflated management fee.

The offer here might be fair. But then the management fee wasn't.

Either way somebody is getting ripped off.
Click to expand...

Sure, not going to argue with you on the management fee side of things.
 
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