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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 announced a share buy back program
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9 July 2019: Update on Reinet (RNI) share buy back programme
Reinet (RNI) released a SENS earlier today providing the markets with an update on their share buy back programme. An extract from the SENS follows:
"Reinet Investments S.C.A. has repurchased 246 204 ordinary shares in the period 1 to 5 July 2019. The shares were repurchased on the Johannesburg Stock Exchange at an average price of ZAR 231.74 per share (highest price: ZAR 236.48; lowest price: ZAR 226.61) for a total consideration of some ZAR 57.06 million (EUR 3.6 million), plus transaction costs. These repurchases were made as part of the share buyback programme announced on 14 June 2019. The total number of shares repurchased under this programme to date is 606 045 ordinary shares for a total consideration of some ZAR 139.63 million (EUR 8.7 million), plus transaction costs."
So the group has repurchased 606 045 shares since it announced the share buy back program at an average price (including costs) of R230.40 per share
"Reinet Investments S.C.A. has repurchased 246 204 ordinary shares in the period 1 to 5 July 2019. The shares were repurchased on the Johannesburg Stock Exchange at an average price of ZAR 231.74 per share (highest price: ZAR 236.48; lowest price: ZAR 226.61) for a total consideration of some ZAR 57.06 million (EUR 3.6 million), plus transaction costs. These repurchases were made as part of the share buyback programme announced on 14 June 2019. The total number of shares repurchased under this programme to date is 606 045 ordinary shares for a total consideration of some ZAR 139.63 million (EUR 8.7 million), plus transaction costs."
So the group has repurchased 606 045 shares since it announced the share buy back program at an average price (including costs) of R230.40 per share
6 February 2019: Reinet (RNI) to buy back shares
What we find interesting is the fact that Reinet has decided to buy back shares instead of buying more BTI shares, which has come down considerably in recent months. So they see more value in buying back their own shares than adding more BTI to their current holdings?
Below the SENS announcement by the company
Below the SENS announcement by the company
SENS
Reinet Investments S.C.A. (the "Company") announces today the commencement of a second share buyback programme. Under the programme, commencing on 11 February 2019, the Company intends to purchase shares at market price for an aggregate maximum amount of EUR 75 million subject to a maximum of 5 million shares over a period ending 31 May 2019 at the latest.
The purpose of the programme is to return value to the shareholders of the Company. Shares repurchased under the programme may be used for any legitimate purpose, such as consideration for acquisitions. The programme will be executed on the Johannesburg Stock Exchange by an intermediary. The Company will not at any time have the right to instruct the intermediary to amend the parameters of the repurchase programme allowing the intermediary to execute share repurchases in the market during both open and closed periods.
The programme will be executed within the limits of the existing authority granted by the Company's shareholders at the annual general meeting held on 28 August 2018, including but not limited to the current limitation that the repurchase price must be at a price no more than an amount equal to 110% of the reference price of the ordinary shares on the relevant exchange; the reference price being the weighted average price of such ordinary shares during the five days of trading immediately prior to the acquisition of such shares. In addition, buybacks will not be at a price higher than the higher of the price of the last independent trade and the highest current independent bid on the Johannesburg Stock Exchange. Purchases under the programme shall not on any trading day on the Johannesburg Stock Exchange ("trading days") exceed 25% of the average daily volume of the shares traded during the 20 trading days preceding the date of purchase. Concurrently, the Rupert family has declared its intention not to sell any shares during the duration of this programme.
The Company will publish regular updates relating to the programme and a further announcement on completion or expiration of the programme, all of which will also be available at www.reinet.com/investor-relations/company-announcements.html
The purpose of the programme is to return value to the shareholders of the Company. Shares repurchased under the programme may be used for any legitimate purpose, such as consideration for acquisitions. The programme will be executed on the Johannesburg Stock Exchange by an intermediary. The Company will not at any time have the right to instruct the intermediary to amend the parameters of the repurchase programme allowing the intermediary to execute share repurchases in the market during both open and closed periods.
The programme will be executed within the limits of the existing authority granted by the Company's shareholders at the annual general meeting held on 28 August 2018, including but not limited to the current limitation that the repurchase price must be at a price no more than an amount equal to 110% of the reference price of the ordinary shares on the relevant exchange; the reference price being the weighted average price of such ordinary shares during the five days of trading immediately prior to the acquisition of such shares. In addition, buybacks will not be at a price higher than the higher of the price of the last independent trade and the highest current independent bid on the Johannesburg Stock Exchange. Purchases under the programme shall not on any trading day on the Johannesburg Stock Exchange ("trading days") exceed 25% of the average daily volume of the shares traded during the 20 trading days preceding the date of purchase. Concurrently, the Rupert family has declared its intention not to sell any shares during the duration of this programme.
The Company will publish regular updates relating to the programme and a further announcement on completion or expiration of the programme, all of which will also be available at www.reinet.com/investor-relations/company-announcements.html
Reinet (RNI) share price chart
The decline in Reinet's share price is closely linked to the decline in the share price of their biggest holding, British American Tobacco (BTI), with the tobacco company having seen a signinficant decline in its share price in recent times. The image below shows how tough BTI has found it in recent times. Note the screenshot below as taken from Sharenet
The image above shows that BTI share price declined by -38.8% during the last 12 months, and by -44.4% over the last three years. So its no real surprise then that the share price graphic of Reinet (RNI) shows a significant downward trend, as their biggest holding has decline by almost 50% in the last 3 years.