Reinet to spend another R1.2bn on share buy-backs
The company is on track to repurchase 4.2% of its shares in issue
Reinet, the investment firm controlled by the Rupert family that owns nearly 3% of British American Tobacco (BAT), plans to return another R1.2bn to investors following the recent decline in its share price. The company said on Wednesday it would launch another round of share buy-backs — this time worth up to €75m (R1.2bn). This follows an earlier repurchase programme in which it spent R667m, plus transaction costs, in the two months to January 30. Reinet said on Wednesday the buy-backs would “return value” to shareholders, who have urged the firm for some time to sell down its BAT stake and repurchase its own stock. They argue that Reinet’s shares are trading at a hefty discount to net asset value (NAV). Following Wednesday’s announcement, the company’s stock gained 3.2% to close at R211.21, its best level in two weeks, but about 26% below a recent high of R286.19 in September 2018. The firm said the repurchased stock could be used to pay for acquisitions. But Gryphon Asset Managem...
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