Billionaire Patrice Motsepe tightens grip on South Africa’s biggest retirement fund provider

 A firm linked to billionaire Patrice Motsepe is consolidating control of Alexander Forbes.

This will be done through a deal that will see US financial services giant Prudential exit its investment in South Africa’s biggest standalone retirement fund administrator.

The transaction will see ARC AF Holdings, which is linked to Motsepe’s African Rainbow Capital, ultimately raise its stake in the financial services firm to 77.94%, the company said in a statement on Friday. It currently holds a 49.88% interest in the company. 

Alexander Forbes shares jumped as much as 9.4% to their highest intraday level since March 2025, before paring gains to 6.5% as of 10:13 a.m. in Johannesburg.

The advance lifted the company’s market value to about R9.4 billion.

Prudential first acquired a stake in Alexander Forbes in 2022. Bloomberg reported in December that Prudential was considering a sale.

Financial services and fintech are a key part of African Rainbow Capital’s strategy, with the firm saying in 2024 that it plans to increase exposure to the sector.

Besides a holding in Alexander Forbes, it has interests in the continent’s largest insurer, Sanlam, and Tyme, the digital banking company that operates in South Africa and the Philippines.

New Veld, a 99%-owned unit of Prudential, holds 34.39% of Alexander Forbes.

The South African firm will buy back 372.8 million shares from New Veld for about R2.5 billion.

Separately, Motsepe’s ARC will buy New Veld’s remaining 74.1 million Alex Forbes shares directly.

Alexander Forbes will finance the buyback with cash resources and a 2.1 billion-rand loan.

The deal is subject to conditions, including shareholders’ approval of the stock repurchase.