Rupert’s Reinet boasts ‘significant’ liquidity after sale of BAT stake
04 July 2025 - 07:55
UPDATED 06 July 2025 - 15:44
by Kabelo Khumalo and Jacqueline Mackenzie
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Reinet Investments’ chair and SA’s richest person, Johann Rupert, said the company had “significant” liquid funds after the sale of its stake in British American Tobacco (BAT) earlier this year.
The £1.22bn transaction ended the Rupert family’s nearly 80-year relationship with the tobacco industry.
Rupert in his letter to Reinet’s shareholders published in the group’s annual report, said despite the group’s favourable cash position, it would not blindly pursue acquisitions, but rather grow its current investments.
“Reinet has disposed of its remaining interests in BAT and consequently has significant liquid funds, ensuring the ability to meet both existing and future investment commitments,” he said in a report published on Friday.
“Liquid funds are held in several currencies and placed with highly rated banks and short-term money market funds. Recognising the potential for continued market volatility and global instability, we will maintain a measured approach to capital deployment, prioritising support for our current portfolio investments while selectively exploring new opportunities and partnerships that promise long-term capital growth.”
The Rupert dynasty’s association with the tobacco industry dates back to the 1940s when Anton Rupert founded the Voorbrand Tobacco Company, later known as Rembrandt.
By the mid-20th century, Rembrandt had cemented its place as a top player in the industry, listing on the JSE in 1956 and branching out into banking, mining and financial services. By 1999 the family merged this tobacco giant, then the world’s fourth-largest tobacco maker, known as Rothmans International, with BAT, the world’s second-largest cigarette producer.
Rupert said the company had over the years received dividends of more than €2bn from BAT and had used its shares in the tobacco producer as collateral to secure borrowing.
Reinet’s liquidity is set for a further boost after it announced last week that it reached an agreement with Athora Holding for the disposal of its interest in the Pension Insurance Corporation Group (PICG).
Reinet holds an indirect 49.5% interest in PICG.
The agreed transaction mechanism provided for the consideration payable for 100% of PICG of about £5.7bn, which was expected to accrue to about £5.9bn, including expected dividends, ahead of closing, Reinet said.
Pan-European savings and retirement services group Athora manages €76bn of assets on behalf of 2.8-million policyholders.
The acquisition by Athora formed part of a broader transaction structure involving the sale of all the shares in PICG held by entities controlled by the Abu Dhabi Investment Authority, CVC Capital Partners, HPS Investment Partners, employees and other shareholders, Reinet said.
The transaction, which is subject to regulatory approval, is expected to close in early 2026.
Reinet first invested in PICG in 2012 with an initial £400m commitment. Through subsequent primary and secondary share purchases, Reinet’s total investment in PICG now stands at about £1.1bn. To date, Reinet has received £426m in dividends from PICG.
Speculation
Reinet intended to use the proceeds from this transaction for its investment activity, it said.
Speculation has been rife in the UK media about a potential transaction, with Reinet confirming on Thursday that it was in advanced talks with Athora, before announcing the disposal later that day.
In May, Reinet reported it had grown its net asset value (NAV) by 11.8% despite heightened market volatility.
The group’s NAV increased by €731m to €6.9bn for the year to end-March. The increase reflected the rise in value of PICG, the gain on the sale of British American Tobacco (BAT) shares and the dividends received from both these companies.
During the year, commitments of €39m were made in respect of new and existing investments, with a total of €144m funded. Its ordinary and special dividends from PICG during the year amounted to €235m.
Reinet’s share price closed 7.9% lower at R531.01 on Friday on the JSE, but year to date it has risen 20.3%.
Update: July 6 2025 This story has been updated with additional information.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Rupert’s Reinet boasts ‘significant’ liquidity after sale of BAT stake
Reinet Investments’ chair and SA’s richest person, Johann Rupert, said the company had “significant” liquid funds after the sale of its stake in British American Tobacco (BAT) earlier this year.
The £1.22bn transaction ended the Rupert family’s nearly 80-year relationship with the tobacco industry.
Rupert in his letter to Reinet’s shareholders published in the group’s annual report, said despite the group’s favourable cash position, it would not blindly pursue acquisitions, but rather grow its current investments.
“Reinet has disposed of its remaining interests in BAT and consequently has significant liquid funds, ensuring the ability to meet both existing and future investment commitments,” he said in a report published on Friday.
“Liquid funds are held in several currencies and placed with highly rated banks and short-term money market funds. Recognising the potential for continued market volatility and global instability, we will maintain a measured approach to capital deployment, prioritising support for our current portfolio investments while selectively exploring new opportunities and partnerships that promise long-term capital growth.”
The Rupert dynasty’s association with the tobacco industry dates back to the 1940s when Anton Rupert founded the Voorbrand Tobacco Company, later known as Rembrandt.
By the mid-20th century, Rembrandt had cemented its place as a top player in the industry, listing on the JSE in 1956 and branching out into banking, mining and financial services. By 1999 the family merged this tobacco giant, then the world’s fourth-largest tobacco maker, known as Rothmans International, with BAT, the world’s second-largest cigarette producer.
Rupert said the company had over the years received dividends of more than €2bn from BAT and had used its shares in the tobacco producer as collateral to secure borrowing.
Reinet’s liquidity is set for a further boost after it announced last week that it reached an agreement with Athora Holding for the disposal of its interest in the Pension Insurance Corporation Group (PICG).
Reinet holds an indirect 49.5% interest in PICG.
The agreed transaction mechanism provided for the consideration payable for 100% of PICG of about £5.7bn, which was expected to accrue to about £5.9bn, including expected dividends, ahead of closing, Reinet said.
Pan-European savings and retirement services group Athora manages €76bn of assets on behalf of 2.8-million policyholders.
The acquisition by Athora formed part of a broader transaction structure involving the sale of all the shares in PICG held by entities controlled by the Abu Dhabi Investment Authority, CVC Capital Partners, HPS Investment Partners, employees and other shareholders, Reinet said.
The transaction, which is subject to regulatory approval, is expected to close in early 2026.
Reinet first invested in PICG in 2012 with an initial £400m commitment. Through subsequent primary and secondary share purchases, Reinet’s total investment in PICG now stands at about £1.1bn. To date, Reinet has received £426m in dividends from PICG.
Speculation
Reinet intended to use the proceeds from this transaction for its investment activity, it said.
Speculation has been rife in the UK media about a potential transaction, with Reinet confirming on Thursday that it was in advanced talks with Athora, before announcing the disposal later that day.
In May, Reinet reported it had grown its net asset value (NAV) by 11.8% despite heightened market volatility.
The group’s NAV increased by €731m to €6.9bn for the year to end-March. The increase reflected the rise in value of PICG, the gain on the sale of British American Tobacco (BAT) shares and the dividends received from both these companies.
During the year, commitments of €39m were made in respect of new and existing investments, with a total of €144m funded. Its ordinary and special dividends from PICG during the year amounted to €235m.
Reinet’s share price closed 7.9% lower at R531.01 on Friday on the JSE, but year to date it has risen 20.3%.
Update: July 6 2025
This story has been updated with additional information.
khumalok@businesslive.co.za
mackenziej@arena.africa
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