Remgro holds back

Finweek English Edition - - COMPANIES & MARKETS -

FOL­LOW­ING the out­cry when An­glo Amer­i­can – in the midst of the global fi­nan­cial cri­sis – held back its div­i­dend, Th­eS­PEC­ta­cle was rather sur­prised not to re­ceive calls from REMGRO share­hold­ers last week. As a re­sult of its change in year-end, no div­i­dend was pro­posed by Remgro for the 12 months to end-March 2011. Share­hold­ers (never a pa­tient lot, even at the best of times) will have to wait for a fi­nal div­i­dend for the 15 months end­ing 30 June 2011, which will only be de­clared in Septem­ber and paid in Novem­ber this year.

Th­eS­PEC­ta­cle sup­poses – with Remgro’s cash bal­ance sitting at R5,6bn (be­fore the wind­fall from the Fun­damo sale) most share­hold­ers reckon it might be worth the wait.

The in­ter­est on that cash pile should get mouths wa­ter­ing. Oh no, wait…what in­ter­est? Most of Remgro’s cash is be­ing held off­shore in euro, Bri­tish pounds and US dol­lars – a po­si­tion share­holder ac­tivist Theo Botha may query (again) at its up­com­ing AGM.

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