Shareholders of Reinet Investments S.C.A. Depositary Receipts (REI) have approved an amendment to the investment guidelines of the company and of its wholly-owned subsidiary Reinet Fund S.C.A., F.I.S. (Reinet Fund at an extraordinary general meeting in Luxembourg.
The amendment would vary the risk diversification policy of the company and Reinet Fund, to permit equity participations in any one investment to exceed the 30% guideline until such time Reinet Fund may gradually diversify its portfolio, taking into account prevailing market conditions.
At the EGM, a total of 139,543, 824 ordinary shares (or 71.22%) and all the 1,000 management shares were represented by proxy out of a total of 195 ,941,286 ordinary shares and 1, 000 management shares in issue.
The shareholders approved the amendment of the investment guidelines of the company and of its wholly-owned subsidiary, Reinet Fund.
Commenting on the positive outcome of the meeting, Josua Malherbe, who acted as the Chairman of the EGM, said: “The decision not to reduce our shareholding in British American Tobacco p.l.c. (BAT shares) over the last three years has been a conscious one. As managers we have over the period evaluated the various options available to us and we believe our decision added substantial value for the Company's shareholders. We further believe that in these difficult times it would be wrong to dispose of such an excellent investment purely because of an arbitrary time constraint.
“We are pleased that the shareholders support our decision. We have also in the last two weeks used Reinet's substantial holding of BAT shares as security for a prudent level of borrowing to finance other investment opportunities. We will continue to evaluate the various options available to us and will choose the ones we believe will add most value to shareholders.” - I-Net Bridge