R443m for Reinet SA in­vest­ment projects

The Star Early Edition - - COMPANIES - Sandile Mchunu

IN­VEST­MENT group Reinet has bor­rowed R443 mil­lion in South Africa to fund fu­ture in­vest­ment projects in the coun­try this year, it said yes­ter­day.

The group has made big­ger bor­row­ings in for­eign coun­tries where most of its in­vest­ments are lo­cated.

Reinet also en­tered into a £500m (R8.48 bil­lion), medi­umterm fi­nanc­ing ar­range­ment with Mer­rill Lynch In­ter­na­tional, which runs un­til 2022 in Jan­uary.

The amount of in­vest­ment avail­able at its dis­posal al­lows the group to in­vest in listed and un­listed com­pa­nies glob­ally.

The group has a num­ber of in­vest­ments in­clud­ing the 68.1 mil­lion shares in Bri­tish Amer­i­can To­bacco (BAT), which rep­re­sents 3.7 per­cent of BAT’s is­sued share cap­i­tal.

The share­hold­ing in BAT, as well as other in­vest­ments, was enough to in­flu­ence the net as­set value (NAV) of Reinet dur­ing the first quar­ter to the end of June.

“The de­crease in the net as­set value of €182m (R2.76bn) dur­ing the pe­riod is in­flu­enced by de­creases in the es­ti­mated fair value of cer­tain in­vest­ments, in­clud­ing BAT, Pen­sion In­sur­ance Cor­po­ra­tion Group and US land de­vel­op­ment and mortgages,” the group said.

Reinet In­vest­ments was cre­ated af­ter the re­struc­tur­ing of Richemont, the Swiss lux­ury goods busi­ness. Its goal is to pro­vide share­hold­ers with an in­vest­ment ve­hi­cle which will man­age their funds in a con­ser­va­tive man­ner.

How­ever, in the year re­sults to end March, the group re­ported that its NAV in­creased 15 per­cent dur­ing the year, to €6bn as com­pared with €5.22bn the pre­vi­ous year.

The group said the value of its in­vest­ment in BAT amounted to €4.06bn at the end of June, down from €4.25bn at the end of March, about 70 per­cent of Reinet’s NAV.

The de­cline in Reinet NAV was also in­flu­enced by BAT share price on the Lon­don Stock Ex­change. BAT’s share price de­creased from £53 at the end of March to £52.34 at the end of June. The group said this re­sulted in a de­crease in value of €51m.

Other in­vest­ments in Pen­sion Cor­po­ra­tion de­clined slightly dur­ing the quar­ter. The es­ti­mated fair value of in­vest­ment was €1.17bn at the end of June, down from €1.18bn at the end of March.

The in­vest­ment in Tri­lan­tic Cap­i­tal Part­ners is car­ried at the es­ti­mated fair value of €209m at the end of June was slightly up as com­pared to €202m at the end of March.

£500m Reinet’s medi­umterm fi­nanc­ing ar­range­ment with Mer­rill Lynch

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