Reinet’s net asset value falls amid tobacco woes

Johann Rupert. Picture: GALLO IMAGES/LOUISE GUBB
Johann Rupert. Picture: GALLO IMAGES/LOUISE GUBB

Johann Rupert’s Reinet Investments says its net asset value declined by €311m in the quarter end-June, as a result of a share price decline in tobacco company British American Tobacco (BAT).

Reinet’s net asset value decreased 6.4% to almost €4.52bn, while net asset value per share fell 5.45% to €23.92, the company said in an operational update on Tuesday. This caused the slice of BAT in Reinet’s overall portfolio to decrease to 46.2% from 52.2% in the prior quarter.

BAT’s share price on the London Stock Exchange decreased from £31.94 at the end of March to £27.49 to end-June, resulting in a decrease in the value of €338m.

Dividends of €39m in the period to end-June partially offset the decline in BAT's share price, while the group saw the value of its stake in UK insurer Pension Insurance Corporation rise almost 4.6% to €1.55bn.

Pension Insurance Corporation is Reinet’s next biggest shareholding, accounting for 34.3% of its portfolio, from 30.6% previously.

The company forked out €29m in share buybacks during the quarter.

At 9.15am on Tuesday Reinet’s share price was flat at R241.25, having risen  14.09% so far in 2019.

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