Investment group Remgro has been taken to task by shareholders who say it is letting a wider discount build up at RMB Holdings (RMH). Shareholders at Remgro’s investor presentation on Friday said RMH’s dalliance with property was taking executives’ eyes off its core investment in banking. RMH holds 34.1% in banking group FirstRand and a smaller investment in a fledgling property hub. RMH has previously traded at a premium to its holding in FirstRand, but a widening discount has become the norm. RMH has a market capitalisation of about R116m, while its stake in FirstRand is worth R133bn. This implies a discount of nearly 13%. Shane Watkins, a director of All Weather Capital, raised questions about RMH executives participating in the property division’s growth. "Management have negotiated a transaction for themselves [and] capture 10% of the upside in their own name." Remgro CEO Jannie Durand — soon to be RMH chairman — said he was unaware of the RMH arrangement and would need to look...

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