Time for Rupert’s Reinet to pay out more generous dividends?
With its net asset value at R88bn, likely due to BAT, shareholders may be wont to light up a celebratory cigar
The sheer size of a nearly R11bn quarterly gain in Reinet’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 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.