Remgro on track for best day in six years after restructuring announcement
Investment holding company to distribute its 28% stake in RMB Holdings to shareholders
The share price of Johann Rupert’s investment holding company Remgro was on track for its best performance in over six years on Wednesday, after notifying the market after trading closed on Tuesday that it intends to distribute its 28% stake in RMB Holdings to shareholders.
In morning trade Remgro's share price was up 5.31% to R194.50, having earlier risen as much as 8.2%. It was on track for its best day since June 2013.
In a separate announcement, RMB Holdings said on Tuesday it would distribute its R130bn shareholding in FirstRand to shareholders.
RMB’s share price was 4.53% to R86.93, having earlier risen as much as 5.6%.
RMH is effectively a holding structure for its 34% stake, and due to changing corporate governance standards and increased pressure from shareholders, these types of holdings structures were being dismantled, Vestact analysts said in a note.