Emotions are running high around a widening discount at RMB Holdings (RMH) — which holds a 34.1% stake in banking giant FirstRand — with shareholders particularly irked about a contentious management participation arrangement at the group’s fledgling property hub. Last Friday, investment behemoth Remgro, usually regarded as an astute investor and a bastion of good corporate governance, was taken to task by shareholders for not addressing the widening discount at RMH. Remgro CEO Jannie Durand is set to take the chairman’s seat at RMH shortly. Shareholders noted that the 13%-15% discount at RMH took at least 3%-4% off Remgro’s intrinsic value. Feisty Cape Town-based investor Nick Krige asked Durand how concerned he was, on a scale of one to 10, about the growing RMH discount, pointing out that RMH and Rand Merchant Insurance represent about R50bn of Remgro’s intrinsic value. "This is an important question to ask of Remgro, which is really a holding company of a holding company," he sa...

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