Finweek English Edition - - News -

THE FU­TURE of a “BAT-less” Rem­gro also came un­der scru­tiny at the group’s gen­eral meet­ing of share­hold­ers last Tues­day. Cor­po­rate ac­tivist Theo Botha sug­gested Rem­gro’s shares would trade at a deeper dis­count to un­der­ly­ing net as­set value af­ter shares in Bri­tish Amer­i­can To­bacco (BAT) were un­bun­dled. Botha ar­gued that be­cause Rem­gro’s larg-

est post-BAT ex­po­sure was to fi­nan­cial ser­vices stocks (RMB and FirstRand) there was a good chance the dis­count to in­trin­sic value would widen.

Rem­gro chair­man Jo­hann Ru­pert said since the an­nounce­ment of the un­bundling of BAT the JSE all-share in­dex had dropped 26% while Rem­gro had dropped just 2%. “Some­body clearly sees value some­where… Quite frankly, dis­counts to NAV don’t bother me… sus­tain­able cash flow is far more im­por­tant.”

Ru­pert added it was also im­por­tant for Rem­gro to keep its costs un­der con­trol. “As I’m the largest share­holder I’ll make sure costs are kept un­der con­trol.”

Ru­pert also re­futed Botha’s sug­ges­tions that Rem­gro would sell cer­tain as­sets to newly cre­ated Reinet In­vest­ments. He said there were no plans at this stage to sell any of Rem­gro’s as­sets to Reinet In­vest­ments. “I can’t think of any Rem­gro as­sets that would nat­u­rally fit into Reinet In­vest­ments.”

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