Tobacco’s contribution to Reinet portfolio slips
Drop in share price and softer pound trim BAT’s dominance of Ruperts’ investment
Reinet Investments, the global investment company controlled by the Rupert family, is looking a little less reliant on its large tobacco holding. Half-year results to end-September released on Thursday showed Reinet’s significant minority shareholding in British American Tobacco (BAT) being reduced to 66.8% of the €5.4bn portfolio from 70.8% at the end of March in 2017. Reinet CEO Johann Rupert said the BAT share price on the London Stock Exchange decreased from £53 at the end of March to £46.72 at the end of September — resulting in a decrease in value of €485m. BAT’s carrying value was also affected by the weakening of the pound against the euro, he said. Some sentiment for BAT shares has been snuffed out by a recent announcement by the US Food and Drug Administration to pursue regulation requiring nicotine in cigarettes to be reduced to nonaddictive levels. UK-based financial services specialist Pension Insurance Corporation Group (PensCorp) — Reinet’s second-largest investment —...
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