COMPANY COMMENT
RMB move unlikely to mute unbundling calls
The time has surely come for RMH to tackle a holding company structure that is both archaic and inefficient
RMB Holdings (RMH) has responded at length to the concern felt by some shareholders at the widening share-price discount to the company’s intrinsic value. RMH indicated that the shares had been trading at an average 11.6% discount to intrinsic value since the start of August 2017, peaking at 17.4% in mid-February. Directors argued in a commentary accompanying the latest financial results that "the recent widening of the discount is not a structural deviation from historical performance and can be attributed to changes in liquidity and volatility patterns on the JSE". Well, all righty then… This view is unlikely to mute suggestions that RMH should hasten to unbundle its mainstay investment, a 34.1% stake in banking giant FirstRand. These suggestions have already become all the more audible (see the latest edition of Business Day’s sister publication Financial Mail) as RMH presses on with building a R10bn property sideline. Naturally, one cannot fault RMH’s successes in snagging super...
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