South African billionaire Patrice Motsepe’s ARC moves to buy, delist CSG Holdings

South African private equity firm African Rainbow Capital (ARC) is set to finalize a share acquisition in CSG Holdings, a multi-disciplinary outsourced services group based in South Africa.

ARC is owned by South African billionaire businessman Patrice Motsepe.

According to reports, the finalization of the deal, which will be implemented under the ARC Fund, an ARC investment vehicle, will result in the delisting of CSG Holdings from the Johannesburg Stock Exchange, as ARC moves to take control of the services group.

CSG offers staffing solutions, facilities management and personnel, industrial and mining support in South Africa. The company disclosed in October that it had received a non-binding indicative offer from Motsepe’s Ubuntu-Botho Investments (UBI) General Partner.

In 2003, Motsepe established UBI as an investment holding and owned 55 percent of the company as of 2019. The holding went on to establish ARC in 2014. Since then, it has further expanded its capacity after the acquisition of Gemcap, another investment holding company.

UBI controls a 24.8-percent indirect stake in CSG through Gemcap.

ARC believes the deal will help facilitate the turnaround of the South Africa-based services group, which will be executed together with the management and other strategic shareholders.

ARC has offered to buy CSG for a cash consideration of R0.35 ($0.02347) per share, media report. The deal will be completed through UBI in its capacity as a general partner of the ARC Fund.

CSG will now become a Black-owned and -controlled entity. This is vital for the company, as it operates in South Africa’s contract services sector where empowerment credentials are key.