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Investment holding company Reinet, which was spun off from Remgro years ago and has a major holding in British American Tobacco (BTI) has provided a management for the quarter ending June 2019
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Management statement released by Reinet (RNI)
MANAGEMENT STATEMENT FOR THE FIRST QUARTER ENDED 30 JUNE 2019
The Board of Reinet Investments Manager S.A. announces the results of Reinet Investments S.C.A. for the quarter ended 30 June 2019.
Key financial data
The Board of Reinet Investments Manager S.A. announces the results of Reinet Investments S.C.A. for the quarter ended 30 June 2019.
Key financial data
- Reinet’s net asset value of € 4 519 million, reflects a compound return of 9.5 per cent per annum in euro terms, since March 2009, including dividends paid
- The net asset value at 30 June 2019 reflects a decrease of € 311 million or 6.4 per cent from € 4 830 million at 31 March 2019
- Net asset value per share at 30 June 2019: € 23.92 (31 March 2019: € 25.30)
- Share buyback programme: 1 986 858 ordinary shares repurchased during the quarter for a consideration of € 29 million; with a total of 7 009 530 ordinary shares repurchased as of 30 June 2019 for a consideration of € 97 million
- Commitments totalling € 17 million in respect of new and existing investments made during the quarter, and a total of € 19 million funded during the quarter
- Dividends from British American Tobacco during the quarter amounted to € 39 million
Business Overview
Below a screenshot from the management update which provides greater details into Reinet (RNI) net asset value (NAV)
The bulk of Reinet's net asset value (NAV) is still made up by their holding in British American Tobacco, with it making up 46.2% of the group's total net asset value. This has seen a signifcant decline in the last year, with the value of their British American Tobacco investment declining by almost Euro 500million in the last quarter. This brought down the contribution of British American Tobacco to Reinet's net asset value from 52.2% to 46.2%
Private equity investments and related partnerships makes up 17.2% of the group's net asset value. And their cash and liquid funds which amounts to Euro373 million makes up 8.3% of the group's total net asset value.
Private equity investments and related partnerships makes up 17.2% of the group's net asset value. And their cash and liquid funds which amounts to Euro373 million makes up 8.3% of the group's total net asset value.
Reinet (RNI) share price history over last 3 years
One can clearly see from the screenshot above, taken from Sharenet, that Reinet has struggled over the last couple of years. And this is largely due to the declines experienced in the share price of Tobacco giant, British American Tobacco. Part of the reason of the share buy back announced by the Group in February is due to the strong share price declines, which made buying back their own shares at a depressed price a good investment.
The summary below shows the share price performance of Reinet over various time periods:
Coming back to the share buy back programme of Reinet. So far the group has repurchased almost a million shares in South Africa for a price of R220million. The group stated the following "The total number of shares repurchased under this programme to date is 951 002 ordinary shares for a total consideration of some ZAR 220.32 million (EUR 13.8 million), plus transaction costs."
The summary below shows the share price performance of Reinet over various time periods:
- 1 week: 4.73%
- 1 month: 3.65%
- Year to date (YTD): 10.51%
- 1 year:-1.23%
- 3 years:-23.37%
Coming back to the share buy back programme of Reinet. So far the group has repurchased almost a million shares in South Africa for a price of R220million. The group stated the following "The total number of shares repurchased under this programme to date is 951 002 ordinary shares for a total consideration of some ZAR 220.32 million (EUR 13.8 million), plus transaction costs."