EDITORIAL: Spinning off FirstRand to build more?
Unbundling of stakes may mark a bigger role in unlisted companies for Johann Rupert and Remgro
History happens quickly in investment markets, and big events tend to be dispensed with rapidly as investors focus on implications for the future. And so it was with last week’s “end of an era” announcement that Remgro and Rand Merchant Bank Holdings are preparing to unbundle their stakes in FirstRand, the country’s largest financial institution by market capitalisation.
After quickly digesting the news, which wasn’t entirely unexpected — though the timing seemed to cause a bit of a shock — the market quickly moved into speculation mode...