MARKET WATCH: Sign of better days for RCL
Judging by RCL’s remuneration policy there must be expectations that large(r) servings of profits will soon be dished up
After tackling Remgro on its rugby investments last week, I was accused by a few investors of carrying out only a half-hearted ankle tap on the group’s food brands conglomerate, RCL Foods, which was already limping. I mentioned in passing in last week’s column that, to my mind, one of the possible corporate activities that investment behemoth Remgro might pursue is to buy out minority shareholders at RCL. My gut feel is that RCL is giving Remgro considerable indigestion, and is not at all as happy an investment node as the group has in its significant minority holding in Unilever SA.Of course, much of the stomach churning at RCL Foods stems from Rainbow Chickens, which has battled for viability during the prolonged drought and the prevailing period of tighter consumer spending. The sugar interests (the old TSB) have not exactly been a sweet spot either. But let’s cut to the chase. More than a few RCL shareholders are miffed at the relative medium-term performance of the company. Ove...
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