Gaspers of surprise as Reinet blows out the NAV lights

Business

Gaspers of surprise as Reinet blows out the NAV lights

Reinet’s shareholding in British American Tobacco helps it boost net asset value by R11bn, or 14%

Marc Hasenfuss

The sheer size of a nearly R11bn quarterly gain in Reinet (https://www.sharenet.co.za/v3/quickshare.php?scode=RNI)’s net asset value (NAV) might raise a few eyebrows in the market. On Wednesday, the Rupert family-controlled investment company  reported an NAV of €5.5bn (R88bn) for the quarter ending December – a sprightly gain of €684m over the quarter to end-September.

With Reinet not releasing a detailed breakdown of the NAV, it seems safe to assume that the 14% gain was largely driven by Reinet’s shareholding in British American Tobacco (BAT). The BAT share price (https://www.sharenet.co.za/v3/quickshare.php?scode=BTI) increased about 11% between end-September and end-December last year on the London Stock Exchange … and there would have been a generous quarterly dividend to boot.

Shareholders will hope the gain in BAT was at least matched by further growth in Pension Insurance Corporation, the UK-based financial services business that ranks as Reinet’s second-largest investment. Only in recent years has BAT’s portfolio dominance dissipated, and at last count had represented less than 50% of total NAV...

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