Analysts welcome Remgro's stake sale to Unilever
Stellenbosch-based investment company Remgro has disposed of the largest unlisted position in its R150bn portfolio, announcing on Friday the sale of its 25.75% stake in consumer brands conglomerate Unilever SA. The deal was announced about 90 minutes before market close ahead of the long weekend, with Remgro’s investment relations consultants indicating that no executives would be available for media interviews. The deal entails Remgro, which also controls food brands conglomerate RCL Foods, selling its significant minority position to Unilever in exchange for the Unilever spreads business in Southern Africa as well as a cash settlement of R4.9bn. The total transaction is worth R11.9bn, which is about R1.2bn higher than the R10.7bn valuation accorded to the Unilever stake in Remgro’s recently released results for the year to end-June. The deal values the spreads business, comprising margarine brands such as Flora, Rama, Stork and Rondo, at R7bn, which reflects a 13.4 times earnings ...
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