Connect with us

Southern Africa

Johann Rupert’s stake in Remgro gains $81.7 million after news of potential Heineken acquisition

Distell, a leading South African brewer, is partly owned by his investment group.

Published

on

South African billionaire Johann Rupert.

Billionaire Johann Rupert’s investment holding company, Remgro Ltd., has gained $81.7 million on the Johannesburg Stock Market (JSE) amid reports that Heineken N.V. is in talks to acquire Distell Group’s operations in South Africa.

Distell, a leading brewer of wine and spirits in South Africa and across the continent, is partly owned by Remgro, a diversified investment holding with assets in banking, financial services, mining, petroleum, beverage, food and personal care products.

The Rupert-linked company has seen its 30.4-percent stake in the South African brewer surge by more than 11 percent as a result of the news.

This indicates that Remgro’s share price surged from $10.19 per share (R143.06) at close of market on May 17 to $11.36 per share (R159.48) as of press time today.

The increase has led to a market value gain of about $81.7 million (R1.5 billion) for the investment company, driven mainly by the recent gains in the brewer’s shares.

It is worth noting that Distell’s shares gained about 5.03 percent at the close of trading activities on the JSE on May 18. This came amid the announcement of Heineken’s plan to takeover Distell’s South Africa operations.

In the same manner, buying pressure from investors and traders on the floor of the JSE this morning has seen the shares of the brewer surge by about 6 percent. This put the total gains for the company’s shares at about 11 percent since the announcement yesterday.

With the recent gains recorded, Distell’s market capitalization has surged from $2.23 billion (R31.43 billion) to $2.5 billion (R35.03 billion). At the same time, the market worth of Remgro’s roughly 69.85 million shares of Distell has increased from $711.5 million (R10 billion) to $793.2 million (R11.1 billion).

Hot News

Led by South African mogul Neal Froneman, Sibanye-Stillwater slashes output target for U.S. mines

The news comes nearly two months after it suspended operations in Montana for seven weeks.

Published

on

Neal Froneman.

Sibanye-Stillwater has reduced its output forecast this year for its palladium and platinum mines in Montana by more than 20 percent due to operational challenges caused by regional floods.

Sibanye-Stillwater is a multinational precious metal mining company based in South Africa. Under the leadership of CEO Neal Froneman, the company is involved in gold and base metals mining in South Africa and the Americas.

The South African mining company has reduced its output forecast for its palladium and platinum mines in Montana to 445,000 to 460,000 ounces in 2022 from 550,000 to 580,000 ounces earlier this year.

The decision to reduce its output forecast comes nearly two months after it suspended operations in Montana for seven weeks due to regional floods that disrupted operations on June 13.

Stillwater’s Montana mine accounts for ab08t 60 percent of the mined production from its U.S. PGM operations.

Aside from operational challenges, the decision to reduce its output forecast can be linked to expectations that the palladium market will swing into surplus by the middle of this decade, necessitating operational repositioning in the event of future price weakness.

“Hence, with our view of the palladium market plus the macroeconomic environment we are going to be dealing with going forward, we really need to reconsider what’s the best way of extracting value out of the assets,” Froneman said.

The company’s cautious approach may also result in the postponement of spending on its Blitz project in Montana, as Froneman stated: “It just doesn’t seem to make good or smart commercial sense to spend millions or billions on a capital project that will deliver into price weakness in the future.”

Shares in the mining firm closed trading on Friday at R40.68 ($2.52), 6.14-percent lower than their opening price on the local bourse, in response to the decision to cut its output forecast in the United States, while maintaining the output profile for its operations in South Africa.

Sibanye-Stillwater’s market cap is R115 billion ($7.1 billion) at current prices, while Froneman’s minority 0.074-percent stake in the company is valued at R85.1 million ($5.26 million).

Continue Reading

Hot News

Led by South African Mouton family, PSG embarks on strategic restructuring

The South African Mouton family owns 24.5 percent of the company.

Published

on

Piet Mouton.

PSG Group, a South African investment holding founded and led by the Mouton family, has begun restructuring its business.

At the investment holding’s general meeting on Aug. 10, more than 95 percent of shareholders voted in favor of the company’s strategic restructuring, unbundling its stakes in the listed subsidiaries that it owns and delisting from the Johannesburg Stock Exchange.

As part of the restructuring, the group will unbundle its stake in subsidiaries such as PSG Konsult, Curro, Kaap Agri, and CA&S, as well as its 25.1-percent stake in Stadio, a tertiary education company.

Shareholders will not receive unbundled shares in these subsidiaries, and there will be no scheme consideration in the group.

PSG Group is a South African investment holding company, with positions in banking, education, finance, and consumer goods.

The South African Mouton family owns 24.5 percent of the company, which includes stakes held by family members like Petrus and Johannes Mouton, who serve as executives in the group.

The restructuring comes after years of attempting to close the gap between the holding’s JSE share price and its intrinsic worth, which management believes is far greater than its local exchange valuation.

The average discount between PSG and the firms in which it holds stakes is more than 40 percent, which can be attributed to investors preferring to invest directly in operating companies rather than through a holding corporation.

Continue Reading

Hot News

South African billionaire Johann Rupert-linked SEACOM partners with BT Group

Seacom is privately funded and 75 percent African-owned.

Published

on

Johann Rupert. ©Billionaires.Africa

SEACOM has announced a strategic alliance with UK telecommunications service provider BT Group as it prepares to enter the African enterprise cybersecurity market.

SEACOM is a leading pan-African telecom services provider linked to South Africa’s richest man Johann Rupert.

The partnership aligns with SEACOM’s plans to expand its portfolio of services targeting African businesses. By leveraging BT Group’s infrastructure and expertise, SEACOM hopes to secure its own infrastructure and deliver new networking and security solutions to African businesses.

“With SEACOM’s global network and local presence and BT’s global reach and expertise, we will be able to deliver a comprehensive portfolio of cloud, security, and connectivity services that are reliable, scalable, and at the cutting-edge of the industry,” Oliver Fortuin, CEO of SEACOM, said.

BT Group, which protects some of the world’s largest organizations from cyber threats through a dedicated network of security operations centers around the world, announced that SEACOM customers will gain access to BT Group’s Cloud Security Incident Event Management (SIEM) platform.

The SIEM platform provides real-time visibility and monitoring across an organization’s entire IT environment, acting as an additional layer of security to SEACOM’s existing ICT solutions.

Seacom, which bills itself as Africa’s most extensive ICT infrastructure provider, is privately funded and 75-percent African-owned, with Rupert’s investment holding Remgro owning 30 percent of the company.

South African mining magnate Patrice Motsepe owns a 15-percent stake in the pan-African telecom services provider through his financial services conglomerate, Sanlam.

Jubilee Holdings, a Kenyan investment holding backed by Aga Khan IV (Shah Karim al-Husayni), increased its stake in SEACOM from 8.8 to 18.8 percent earlier this year after acquiring an additional 10-percent stake in the company.

According to Nizar Juma, chairman of Jubilee Holdings, the transaction will strengthen the company’s ability to diversify its investment priorities across major sectors of the economy.

Continue Reading

Trending