(Dec 3): US insurer Prudential Financial Inc is considering selling its stake in South African financial services firm Alexforbes, according to people familiar with the matter.
The Newark-based company notified billionaire Patrice Motsepe’s African Rainbow Capital (ARC) that it’s weighing an exit, said the people who asked not to be identified as the information isn’t public. Prudential also informed Alexforbes 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 10.7 billion rand. Alexforbes shares traded 0.7% higher at 8.23 rand by 12.55pm local time.
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 rumours or speculation.”
ARC, which holds about 47% of Alexforbes, declined to comment, as did a spokesperson for Alexforbes.
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The South African company has been undergoing a strategic review under chief executive officer 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 Alexforbes’ minority shareholders have yet to receive any formal notification or communication about Prudential’s plans, one of the people said.
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