Reinet suffered collateral damage as the share price of British American (BAT), which makes up the biggest share of its net asset value, dropped. BAT and other global tobacco companies have come under increased regulatory scrutiny for their tobacco products, including e-cigarettes. Reinet’s net asset value dropped to €4.8bn in the six months to end-September, from €5.4bn a year ago, as the share of BAT slipped to £35.845, from £46.72 a year before. The value of Reinet’s investment in BAT shrunk to €2.738bn, from €3.606bn a year ago. Reinet said in a statement that the US Food and Drug Administration’s continued regulation weighed on the tobacco industry. The investment vehicle controlled by billionaire Johann Rupert holds 68.1-million shares in BAT, representing about 2.97% of BAT’s issued share capital. Earlier in the week, BAT plummeted 11% after Wall Street Journal reported that the US government is considering banning menthol cigarettes. But the value of Reinet’s investment in U...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.