RMH ‘not closed to investors’, calls for unbundling of group’
Rand Merchant Bank Holdings chairman Jannie Durand acknowledges shareholder concerns over growing discount of share price and value of underlying assets
Rand Merchant Bank Holdings (RMH) board is addressing investors concern over the growing discount of the company’s share price and the value of its underlying assets, which has led to calls for the unbundling of the group. Jannie Durand, chairman of RMH, which holds 34% of First Rand and property investments in SA and Europe, said at the annual general meeting on Wednesday that the majority of shareholders had not asked for an unbundling of the group but given the widening discount between the share price and the underlying assets that the board was “not dogmatic or closed” to the topic. First Rand accounts for 99% of RMH’s intrinsic value. In the past 12 months, the discount has increased to 13% from a previous three-year average of about 5% prompting some shareholders to push management to consider unlocking value by unbundling the investments. RMH CEO Herman Bosman told the shareholder meeting that every board meeting since March had included a discussion about the discount. “We ...
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