Reinet, led by South Africa’s richest man Johann Rupert, posts $6.7 billion in net assets

Feyisayo Ajayi -

Key Points

  • Reinet’s net asset value jumps 8.1%, driven by smart investments and hefty dividends from tobacco and insurance holdings.
  • Strategic investments and a $66.43-million injection fuel growth, highlighting Reinet’s proactive approach.
  • Reinet commits to consistent returns with a planned dividend increase, reflecting its focus on long-term value creation.

Reinet Investments, an international investment firm based in Luxembourg and controlled by South Africa’s wealthiest individual Johann Rupert, announced a significant surge in its net asset value (NAV) for the fiscal year ending March 31, 2024.

The NAV reached €6.18 billion ($6.73 billion), marking an 8.1-percent increase from the previous year and maintaining a steady compound annual growth rate (CAGR) of 8.8 percent since March 2009, inclusive of dividends paid.

Strong financial results and strategic investments

According to its recently published financial statement, Reinet’s net assets climbed from €5.72 billion ($6.22 billion) to €6.18 billion ($6.73 billion), an increase of €464 million ($504.77 million).

During the fiscal year, Reinet committed €61 million ($66.43 million) to new and existing investments, funding a total of €128 million ($139.38 million). This strategic allocation highlights Reinet’s proactive approach to diversifying its portfolio and seizing growth opportunities.

Significant dividends from its holdings bolstered Reinet’s income from €164 million ($178.63 million) to €212 million ($230.92 million). British American Tobacco contributed €130 million ($141.56 million) in dividends, while Pension Insurance Corporation Group Limited paid its inaugural dividend of €57 million ($62.07 million).

Commitment to shareholder returns

Reinet distributed a dividend of €0.3 ($0.327) per share, totaling approximately €55 million ($59.9 million), excluding treasury shares.

The firm plans to reward shareholders with a total dividend of €0.35 ($0.3812) per share after the 2024 annual general meeting, reflecting its commitment to delivering consistent returns to its shareholders.

Reinet leverages tobacco, insurance for long-term shareholder returns

Established after a demerger from Richemont in 2008, Reinet Investments has solidified its presence in the tobacco industry while diversifying its portfolio across insurance and private equity sectors, with a strong focus on British American Tobacco.

Johann Rupert, who holds a 24.9-percent stake in Reinet, significantly contributes to his $13.2-billion fortune, as reported by the Bloomberg Billionaires Index. His stake in the investment vehicle is currently valued at $1.17 billion.

Reinet’s strong financial performance and commitment to a progressive dividend policy demonstrate its focus on long-term value creation for shareholders, even amidst global market uncertainties. The company’s active management approach and diversified investments have enabled it to increase its NAV and deliver sustainable growth.