African Rainbow Capital (ARC), an investment firm controlled by South African billionaire Patrice Motsepe, has acquired an 18.36% stake in public listed Afrimat, a company listed on the Johannesburg Stock Exchange.
Afrimat is a leading black empowered open pit mining company providing industrial minerals and construction materials.
“Afrimat is of the view that this will create a long-term and sustainable black economic empowerment partner with certainty around shareholding which will build further value for Afrimat,” Afrimat CEO Andries van Heerden said in a press release on Friday.
Afrimat’s shares gained over 5% after the company announced the transaction.
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.
A spokesman for Motsepe did not respond to a request for comment.
Patrice Motsepe, South Africa’s first and only black billionaire, is the CEO of African Rainbow Minerals. He has a current net worth of $1.46 billion according to FORBES’ Realtime billionaire scoreboard on Friday.