market watch
MARC HASENFUSS: Remgro a bit top-heavy
Buried under Remgro’s ‘heavy half-dozen’ lie some really great little investments
JSE investment stalwart Remgro is probably overdue some housekeeping. CEO Jannie Durand disclosed at last week’s investment presentation that 99.4% of Remgro’s earnings came from the company’s top six investments. This situation, he admitted, means Remgro will be evaluating all its investments on a continuing basis. It’s fairly easy to see that not only the bulk of earnings but also the make-up of the intrinsic value are largely attributable to private hospitals group Mediclinic, banking hub FirstRand/RMB, insurance cluster RMI Holdings and liquor business Distell, as well as consumer brands businesses RCL Foods and Unilever. But buried under this “heavy half-dozen” lie some really great little investments — Air Products, 10%-owned building supplies firm Wispeco, Total SA, Dark Fibre Africa (DFA) and Seacom, as well as some promising fledgling food niches tucked away under venture capital subsidiary Invenfin. Durand says Remgro is not considering revisiting a VenFin-type structure, ...
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