Reinet Investments, an international investment firm controlled by Africa’s wealthiest individual Johann Rupert, experienced a substantial decline in net asset value during the first quarter of its fiscal year 2023.
The Luxembourg-based investment vehicle, which holds significant interests in British American Tobacco (BAT), saw its net asset value decline by more than $81 million, reflecting a decrease of 1.3 percent.
As stated in its recently published management statement for the period ending June 30, Reinet’s net assets declined from €5.72 billion ($6.31 billion) to €5.646 billion ($6.23 billion). The decrease amounted to €74 million ($81.62 million), significantly impacting the firm’s overall financial standing.
Despite the challenging quarter, Reinet Investments remained active in the market, committing €38 million ($42 million) towards new and existing investments. The company managed to fund a total of €43 million ($47.5 million) during this period, demonstrating its continued interest in pursuing opportunities amid the current market volatility.
Reinet Investments S.C.A. was established as an investment vehicle following its demerger from the Swiss luxury goods giant Richemont in October 2008. Its primary asset at the time was Richemont’s stake in British American Tobacco, solidifying its presence in the tobacco industry.
South African billionaire Johann Rupert holds a 24.9-percent stake in Reinet Investments, contributing to his status as the richest man on the African continent, with a net worth of $11.6 billion. His stake in the investment vehicle is currently valued at $1.14 billion, further boosting his billion-dollar fortune.
Earlier this month, Reinet hinted at potential divestment in British American Tobacco to raise financing in response to the current market volatility. By reducing its debt levels, the company aims to maintain flexibility and reactivity, creating a strong financial foundation to seize any future opportunities that may arise.
