4 November 2016

Africa Rainbow Capital snaps up stake in Sinayo Securities

Patrice Motsepe’s investment firm Africa Rainbow Capital (ARC) is continuing to boost its portfolio with impressive acquisitions as part its long-term goal of making strategic investments.

ARC yesterday announced its fourth transaction this year, a 49% stake in equities brokerage firm Sinayo Securities, for an undisclosed amount.

The transaction is part of Motsepe’s ambition to build an independent blackcontrolled business with exposure to significant investments in the financial services sector. ARC’s investment in Sinayo has been hailed as a boost for transformation in the securities industry which is dominated by white-owned firms.

Sinayo Securities is a South African, independently owned and managed, broad- based BEE, member of he Johannesburg Stock Exchange.

The company specialises in listed company’s equity sales and trading. Babalwa Ngonyama, CEO of Sinayo Securities said: “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 experience and industry relationships that will be of benefit to our business and its clients.” She said due to ARC’s significant investment her brokerage firm can now improve and expand services.

“We are now in a position to facilitate and assist our clients when they trade large volumes and baskets of equities.”

Johan van Zyl, CEO of ARC justified the transaction saying: “This transaction positions Sinayo Securities to expand the scope and capacity of its brokerage activities over the medium term to include large amounts of portfolio trades, equity derivatives trading, and participation in an international equities trading platform with access to global equities research.”

Khumo Shongwe, chairperson of Sinayo said their tie-up with ARC will be big boost to women as they claim space in the financial services.

“As women become leaders in the financial services industry, they will create footprints for other women to follow in their quest to move up the industry ladder. The deal could also be a catalyst for a culture of inclusion and transformation,” she said.

The Sinayo deal joins a list of other impressive transactions concluded by ARC is recent months. In January, ARC acquired Indwe Broker Holdings, which carried a purchase price of just more than R200m.

This deal was followed by another investment in Bravura, banking and advisory firm of CMB International, to take up a 29.9% stake; the deal was subject to regulatory approvals.

CMB International and its subsidiaries provide corporate finance, structured solutions and property investment services to clients in Southern Africa and Australia.

The company is listed on the Stock Exchange of Mauritius Ltd and also holds a secondary listing on the Namibian Stock Exchange.

After Bravura, ARC went on to acquire a 20% stake in Val de Vie Investments. This was the firm’s first investment in the country’s residential property market African Rainbow Capital, under the directorship of billionaire Motsepe, also hold a recently acquired 18.14% stake in Retrofit Networx. Source: ANN7