Reinet, the Rupert family-controlled investment vehicle, is showing no signs of kicking its long-held cigarette habit despite a precipitous fall in the share price of key investment British American Tobacco (BAT). Commenting on interim results to end September, Reinet CEO Johann Rupert acknowledged the BAT share had recently decreased substantially as the tobacco industry was being affected by the US Food and Drug Administration’s continued regulation efforts as well as the transformation strategies of industry players looking to enhance their new generation products (NGPs).

Since the start of  2018 BAT shares on the London Stock Exchange (LSE) have slumped from around £50 to £27. But Rupert stressed, “Reinet continues to take comfort from the underlying financial results, strong dividends and future prospects of BAT, including the investment in Reynolds American, decreased US tax rates and increased focus on NGPs.” Reinet holds 68.1-million BAT shares — which represents a 2.9...

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