International giant looks to exit Patrice Motsepe-backed company

US insurer Prudential is considering selling its stake in South African financial-services firm Alexander Forbes, according to people familiar with the matter.

The Newark-based company notified billionaire Patrice Motsepe’s African Rainbow Capital that it’s weighing an exit, said the people who asked not to be identified as the information isn’t public. Prudential also informed Alexander Forbes about its plans, they said.

Prudential first bought a stake in the Johannesburg-based firm in 2022, and owns about a third of the company that has a current market value of R10.7 billion.

The company cited a change in strategy for considering the exit, though no final decisions have been made, the people said.

“We regularly evaluate strategic opportunities to ensure they are aligned with our long-term strategy,” Prudential said in an emailed response to a request for comment. “It is our policy not to comment on market rumors or speculation.”

ARC, which holds about 47% of Alexander Forbes, declined to comment, as did a spokesperson for Alexander Forbes.

The South African company has been undergoing a strategic review under CEO Dawie de Villiers, who took over the role seven years ago.

In that period, the company has pivoted to selling non-core assets, while focusing on providing advice and other retail-oriented services.

Some of Alexander Forbes’ minority shareholders have yet to receive any formal notification or communication about Prudential’s plans, one of the people said.