Patrice Motsepe’s African Rainbow Capital Investments (ARC Investments) says increased online activity during Covid-19 boosted the value of its stake in mobile operator Rain.
Rain experienced a surge in subscriber numbers during the national lockdown as people were required to work from home, the group said.
ARC Investment’s intrinsic net asset value per share increased 2.1% to R9.54 in the year to end-June, while the intrinsic value of the ARC Fund, its investment vehicle, rose 19% to R11.1bn.
The ARC Fund’s investment in Rain increased to R3.1bn at the end of June, from R2.5bn previously, mainly as a result of a fair value write-up of R479m. Rain constitutes 27.9% of the fund’s value, and is its single-biggest investment.
TymeBank, 8.3% of the fund’s value, had 1.9-million customers at the end of June, but Covid-19 has delayed implementation of a partnership with the Zion Christian Church (ZCC).
In February the bank announced it was partnering with ZCC to offer banking services to about 6-million adult church members.
“Responding to a significant change in market conditions, the bank’s management has introduced cost-reduction measures, while also focusing on revenue diversification and partnerships activation,” ARC Investments said.
ARC Investments said many of its other investee companies experienced low consumer, business and investor confidence, all of which was intensified by the Covid-19 pandemic.
Source: Business Live