Johann Rupert’s forgotten stepchild now has R135 billion in assets

Billionaire Johann Rupert’s investment vehicle, Reinet, increased its net asset value (NAV) by over R8 billion between September and December 2024.

The company reported a NAV of R135.18 billion as of 31 December 2024, up from the R126.82 billion recorded in September last year.

It should be noted that Reinet records its assets and liabilities in euros, and the rand amounts were reached using the closing euro/rand exchange rate prevailing on 31 December 2024. 

The company said its growth in NAV reflects increases in the estimated fair value of certain investments, including British American Tobacco, other listed investments, Pension Insurance Corporation, Trilantic Capital Partners, TruArc Partners and Coatue funds.

Dividends from the company’s largest holding at the time, British American Tobacco, also boosted the growth in NAV. 

However, the company said decreases in the estimated fair value of investments like Prescient China funds and accrued expenses related to management and performance fees offset some of the other investments’ growth.

Reinet’s cash and liquid funds increased from €349 million in September 2024 to €524 million on 31 December 2024. 

The company received dividends of around €34 million, and distributions from underlying investments amounted to some €10 million. 

The company’s cash flow was also boosted by its sale of BAT shares in December last year.

Prior to this sale, Reinet owned around 48.3 million BAT ordinary shares, comprising 24% of the company’s NAV.

However, in November and December 2024, Reinet sold 5 million BAT ordinary shares through a dribble-out process. The company said this sale realised proceeds of €179 million (R3.44 billion)

In January, the company sold its remaining 43.3 million shares in the tobacco giant,  realising proceeds of €1.45 billion (R27.89 billion).

Looking ahead, Reinet said it is operating in a market where uncertainty is widespread and there are significant risks.

“Geopolitical uncertainty continues with global markets impacted by the effects of the Ukraine crisis, turmoil in the Middle East and high interest rates and inflation,” the company said. 

“Whilst inflation and interest rates trend downwards, the risk that they may increase remains. The extent and impact of ongoing worldwide factors remain uncertain.”

Reinet specified that it has no direct exposure to Russia, Ukraine or the Middle East through its underlying investments or banking relationships.

It added that it has not experienced any significant direct impacts in respect of interest rate fluctuations or inflation. 

However, the company said it has taken steps to assess and potentially adjust the valuation of its investments in light of external factors and market conditions.

These factors include various geopolitical areas of conflict, volatility in stock and currency markets, interest rates, inflation and exposure to certain financial institutions. 

“Future valuations will take into account any new impacts of the above, which could affect the valuation of underlying investments,” the company warned.