Prudential Financial Exits Alexforbes Stake in $185 Million South African Transaction

JOHANNESBURG — US-based Prudential Financial Inc. has entered into definitive agreements to sell its entire investment in Alexander Forbes Group Holdings (Alexforbes) through transactions valued at approximately $185 million.

The exit aligns with Prudential’s broader strategy to streamline its geographic footprint and concentrate capital on core markets. The transaction paves the way for ARC AF Holdings, a firm linked to South African billionaire Patrice Motsepe’s African Rainbow Capital, to significantly increase its stake in the financial services group from 49.88% to 77.94%.

Dual-Tranche Exit and Buyback Structure

The $185 million exit by Prudential's indirect subsidiary, New Veld LLC (which held a 34.39% interest in Alexforbes), is structured across two primary components:

• Share Repurchase: Alexforbes will buy back approximately 372.8 million shares from New Veld for roughly R2.5 billion (approx. $150 million), funded via cash reserves and a R2.1 billion commercial loan.
• Direct Acquisition: Motsepe’s ARC AF Holdings will directly acquire New Veld’s remaining 74.1 million Alexforbes shares.

Strategic Consolidation for Alexforbes

For Alexforbes, the transaction centralizes ownership under regional strategic leadership while clearing out a major international shareholder that initially entered the capital structure in 2022.

"Alexforbes has been an important and successful investment for Prudential, and we are proud of what we have accomplished together," said David Legher, head of emerging markets at Prudential, noting that the move positions the firm for continued success under concentrated local ownership.

The transaction remains subject to customary closing conditions, regulatory clearances, and shareholder approval for the share repurchase, with completion anticipated in the first half of 2027.

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