African Rainbow Capital Investments (JSE:AIL) News - Voluntary update on new portfolio company investment

African Rainbow Capital Investments Limited
(Incorporated in the Republic of Mauritius)
(Registration number C148430)
JSE share code: AIL
ISIN: MU0553S00000
(“ARC Investments” or “the Company”)

VOLUNTARY UPDATE ON NEW PORTFOLIO COMPANY INVESTMENT

NEW PORTFOLIO COMPANY INVESTMENT

Shareholders are advised that ARC Financial Services Holdings Proprietary Limited (“ARC FSH”) is part
of a consortium, led by the Ethos Mid-Market Fund I, which has entered into agreements to acquire
100% of Crossfin Technology Holdings Pty Ltd (“Crossfin”) and commits to providing acquisition and
growth capital in a R1.5 billion transaction (the “Transaction”).

ARC Investments is a Limited Partner in an en-commandite partnership, the ARC Fund Partnership SA
(“ARC Fund”). ARC FSH is 50.1% owned by African Rainbow Capital Proprietary Limited and 49.9%
owned by the ARC Fund, which is the vehicle holding the assets within ARC Investments, the listed
entity.

In terms of the Transaction, ARC FSH will acquire 37.33% of Crossfin, via the consortium, for a
consideration of R600m which will assume a combination of acquisitive capital from the existing
shareholders and growth capital for identified portfolio transactions.

The Transaction is considered a landmark deal that will see Crossfin being positioned for the next
phase of its growth trajectory. The transaction is aligned to ARC Investments’ ambition to establish an
ecosystem of fintech related businesses.

CROSSFIN

Crossfin is one of Africa’s leading independent fintech platforms, as measured by both the volume and
value of transactions processed through its platforms. Crossfin seeks to entrench its position as a
market leading platform. It is a high-growth business operating in industries which are set to benefit
from the growing trend towards usage of digital payments over cash. The Transaction strongly
positions Crossfin to leverage new technologies as they emerge.

The Transaction includes the provision of acquisition and growth capital to enable Crossfin to deliver
on its vision of investing in fintech solutions in select markets on the African continent.

Disclaimer
The financial information on which this announcement is based, has not been audited, reviewed and
reported on by the Company’s external auditors.

Ebene, Mauritius (with simultaneous circulation in Johannesburg)
24 November 2021

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 24-11-2021 08:00:00
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