Reinet grows NAV despite weaker BAT


Reinet grows NAV despite weaker BAT

Published Date: 2021-01-25 | Source: Stephen Gunnion | Author: Stephen Gunnion

Reinet grows NAV despite weaker BAT

The investment fund has been reducing its stake in British American Tobacco and increasing its insurance investment.

Reinet Investments grew the net asset value of its investment fund in the final quarter of last year despite a decline in British American Tobacco's share price and the impact of Covid-19 on its portfolio of investments.

In an update, the investment group said the NAV of the Reinet Fund amounted to €28.02 at the end of December, up 5.5% from September's closing level of €26.57. The entire ordinary share capital of Reinet Fund of 171.3 million shares is owned by Reinet Investments. In addition, 1,000 management shares in Reinet Fund are held by Reinet Fund Manager.

The Reinet Fund owns a stake in British American Tobacco, which it has been reducing as it increases its shareholder in Pension Insurance Corporation Group. It also holds a number of listed and unlisted private equity investments. A decline in BAT's share price over the last four years has also reduced its dominance in Reinet's portfolio, while other investments including Pension Insurance Corporation Group (PICG) have gained in value. In October, the fund bought a further 39-million PICG shares for £119 million, increasing its holding to 49.5% from 46.6%.

British American Tobacco's share price declined by 7.8% between the end of September and the end of December, ending the period at R591.55.

Reinet said the wide variability in expected financial, social and epidemiological outcomes regarding the Covid-19 outbreak had continued to cause significant levels of market uncertainty mostly reflected in increased market, currency and commodity volatility.

Reinet's shares rose 1.6% to R286.42 on Friday.

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