Remgro grows RCL stake


Remgro grows RCL stake

Published Date: 2021-01-15 | Source: Stephen Gunnion | Author: Stephen Gunnion

Remgro grows RCL stake

The investment holding company extended an offer it made to one minority shareholder of the poultry and food group.

Remgro has grown its stake in RCL Foods to 74.5% from 72.6% following an offer to purchase shares from investors who wanted to cash in on the illiquid stock.

The investment holding company said it bought just over 17.8-million shares in the open market between 2 December and 11 December, representing 1.9% of RCL's issued ordinary shares, at R8.05 per share. It was prepared to buy up to 100-million RCL shares.

Remgro made the offer last month after acquiring 11.1-million shares from one of RCL's minority shareholders for the same price. Its high ownership of RCL impedes buying and selling of the stock.

While the move increased its ownership of the poultry and food group, it said the purchases should not been seen as a general or partial offer to buy out all minorities and take the company private.

Remgro's shares closed 1.2% up at R101 yesterday. RCL declined 0.1%, or 1c, to R8.28.

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