MARC HASENFUSS: Remgro calls time on R44m rugby loan
Owning a rugby team brand might fit more appropriately in the personal investment portfolio of Remgro chair Johann Rupert
Remgro may have lingering regrets over ever trying to pluck sustainable profits from the local poultry sector, but the legacy of the old Rainbow Chickens might look like a picnic compared with the beating the investment behemoth is taking in its sports investments. The news that Remgro is calling in a R44m loan from Western Province Rugby Football Union caught my eye. Not so long ago Remgro held an indirect 24.9% stake in WP Rugby via its stake in the old sports and media group Sail. At one stage it was set to take a 49% stake in a new-look WP. But it withdrew, reportedly citing concerns over the SA Rugby Union model for franchises, as well as certain stipulations associated with stakeholdings in rugby teams. Now, let’s be frank: Remgro holds an investment portfolio with an intrinsic value of more than R150bn, so a R44m loan claim is about as significant as a mud splatter on the boot of Springbok lock RG Snyman. The firm is hardly going to be tripped up by a R44m loan. But I do wond...
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