Several major corporate actions are set to reshape the Johannesburg Stock Exchange (JSE), reflecting strategic shifts among some of South Africa's leading companies. These include African Rainbow Capital Investments’ (ARCI) delisting, Anglo American Platinum’s rebranding to Valterra Platinum amid a demerger, and Blue Label Telecoms’ potential listing of Cell C.
Corporate actions are decisions taken by a company’s board of directors that affect the company’s shares, ranging from mergers, demergers, and acquisitions to name changes, and delistings. These moves often influence shareholder value and signal strategic changes in the business.
Rain & TymBanks’ ARCI delists
African Rainbow Capital Investment Limited (ARCI) plans to delist from both the JSE and A2X Markets due to its shares trading below net asset value. To unlock value, ARCI is offering shareholders R9.75 per share - a 12.6% premium on the 14 March 2025 market price. Shareholders have approved the move, and the company will also redomicile from Mauritius to South Africa. Investors will have the option to remain invested through unlisted shares.
“The ARCI share price also does not reflect the true value of the investment in the ARC Fund and trades at a discount to the net asset value of the ARC Fund, meaning that investors in ARCI are not receiving the true value of their investment. It is anticipated that the Offer will result in a return of value for investors.” - African Rainbow Capital Investments
Buy, Sell or Hold?
ARC’s unlisted shares still offer exposure to the company’s diverse portfolio, and the company stated that shareholders will get a future opportunity to sell. This provides potential for returns despite limited liquidity - unlisted shares are not tradable on EasyEquities.
Anglo American demerger
In mining, Anglo American Platinum (Amplats) is undergoing a major shift as parent company Anglo American Plc demerges the unit. Shareholders overwhelmingly approved the move, and Amplats will be renamed Valterra Platinum Limited, with a new ticker going live on 28 May 2025. The demerger becomes effective on 31 May. Anglo American will focus on energy transition metals, while Valterra will remain focused on platinum group metals with primary and secondary listings on the JSE and London Stock Exchange, respectively.
“Anglo American Platinum is now set up to thrive independently and, with the exceptional management team in place, now is the right time to demerge the business and as a result allow our shareholders to participate directly in its success.” - Anglo American Plc
“As an independent company with a new name - Valterra Platinum – we offer an exciting investment proposition based on our industry-leading resource endowment and integrated processing capacity.” - Anglo American Platinum
Cell C potential listing
Blue Label Telecoms is considering listing Cell C on the JSE to unlock value and support its independent growth. The restructuring would involve converting debt into equity, internalizing the postpaid business, and transferring airtime inventory. Blue Label currently owns 49.5% of Cell C, and the listing, subject to approvals, could take place within 12 to 18 months, depending on progress and market conditions.
“The proposed restructure of the Group is expected to deliver significant benefits for the Company and its shareholders. Should the proposed restructure of the Group be implemented, it will facilitate a separation and potential future listing of Cell C from Blue Label's existing distribution businesses, allowing investors to independently assess the value and strategic focus of each business.” - Blue Label Telecoms
Conclusion and important dates
These corporate actions reflect a period of transformation on the JSE. For investors, they present opportunities to reassess portfolios in light of potential value unlocks, structural changes, and evolving market dynamics.
Key Dates to Note:
African Rainbow Capital Investments (ARCI):
Anglo American Plc demerger
Blue Label Telecoms / Cell C:
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