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The Luxembourg-based Reinet is one of the three major companies in which the Ruperts have a significant stake, alongside Richemont and Remgro.
South Africa’s richest family has control of Reinet as a general partner, with Johann Rupert acting as executive chairman.
The company is undergoing a massive change after selling its two largest stakes, British American Tobacco (BAT) and Pension Insurance Corporation (PIC).
The sale of BAT marked the end of the era for the Rupert Family, whose wealth traces back to the 1940s when Johann’s father, Anton, established Voorbrand Tobacco Company in the 1940s.
Voorbrand would become Rembrandt, a major player in the tobacco industry, in 1948. It would list on the JSE a few years later.
The company would then be split into three separate entities: luxury goods company Richemont, South African-focused Remgro, and Reinet, which would house its tobacco interests.
However, Reinet has gradually reduced its share of BAT. It held 48.3 million BAT shares in March 2024, which were sold in late 2024 and early 2025. This pocketed the group €1,627 million (R33 billion).
Rupert said that the large amount of cash following the BAT sale would ensure the group’s ability to meet existing and future investment commitments.
In the middle of the year, following media speculation, the group also confirmed that it reached a deal to sell PIC to Athora Holding UK.
Reinet owns just under 50% of PIC, which manages £50.9 billion (around R1.2 trillion) of pensions for nearly 400,000 policyholders.
It first invested in PIC in 2012 via an initial £400 million (R9.6 billion) commitment, with subsequent primary and secondary share purchases increasing its total investment to £1.1 billion (R27 billion).
The transaction with Athora, which is subject to regulatory approval, is expected to close in early 2026.
PIC’s fully diluted share capital will rise from an estimated £5.7 billion (R137 billion) to £5.9 billion (R142 billion), including expected dividends ahead of closing.
According to its latest available balance sheet, PIC is Reinet’s largest investment and represents 53.7% of its total Net Asset Value (NAV)
Following the sale of its BAT shares, cash is the second largest asset on Reinet’s balance sheet, accounting for 26% of the total NAV.
Good investment opportunity
Speaking with Business Day TV, All Weather Capital’s Tofile chose Reinet as his stock pick.
He noted that around 80% of Reinet’s net asset value (NAV) is now in cash. In fact, the cash part of its NAV on a per share basis is higher than its listed share price.
Tofile said that the company is a “bit of a cash shell,” which refers to listed companies with nothing but cash on their balance sheets.
Essentially, the cash on Reinet’s balance sheet would be worth more than the cash it would take to buy the share.
Although there is an opportunity for further mergers and acquisitions (M&A) to be added to the portfolio, All Weather Capital is expecting meaningful shareholder returns.
Stock buyers will also benefit from a large discount, which sits at around 30% per manager valuations or over 20% if you consider the offer for the PIC business.
There is not only a strong margin of safety, but also good optionality for shareholders of Reinet in the near future.
Despite the plentiful cash, there have been previous warnings for shareholders who expect the company to pay out.
Following Reinet’s sale of its shares in BAT, Sanlam Private Wealth’s Nick Kunze said that Rupert is notorious for not giving cash back to shareholders, with all remaining funds likely to be used for M&A.
Issued on BusinessTech by Luke Fraser | https://businesstech.co.za/news/business/835477/billionaire-johann-ruperts-mountain-of-cash-going-at-a-huge-discount/
