Remgro: ructions over RMH discount
Shareholder activist dismisses ‘market technicalities’ argument while CEO says issue will be taken seriously
Investment behemoth Remgro’s role in dealing with a dastardly discount in RMB Holdings (RMH) — its biggest investment — is coming under intense scrutiny. Remgro holds a 28.2% stake in RMH, which has as its main investment a 34.1% stake in banking group FirstRand. It was clear from the Remgro investor conference call last Thursday that there are growing frustrations with the RMH structure. RMH technically escapes being tagged a holding company with a single listed asset because of a smattering of (dare we say "unconvincing") property investments. Some of these property assets have underperformed, and have been subject to worrying impairments. It is estimated that RMH, which now attracts a wider discount on the FirstRand holding, is "costing" Remgro R5bn in trapped value. During the investor conference call, shareholder activist Nick Krige contended that RMH’s previous argument — that the wider discount on the FirstRand holding was caused by market technicalities — was incorrect. He b...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.