BAT dividend boosts Reinet net asset value a share
Reinet received 74million as dividend income from BAT during the quarter.
However, the investment group also sold 2.6million BAT shares for total proceeds of 98m during the period.
Reinet said on Friday that BAT remained its single largest investment position and was kept under constant review, considering the company’s performance, the industry outlook, cash flows from dividends, stock market performance, volatility and liquidity.
As a result, Reinet holds 65.4million shares in BAT by the end of December, which represents 2.85percent of BAT’s issued share capital.
The group said the value of its investment in BAT increased to 2.5billion at the end of December, up from 2.3bn compared with the end of September.
“The increase in carrying value is a result of the BAT share price on the London Stock Exchange increasing to £32.32 (R607.48) at the end of December, up from £30.08 at the end of September and the strengthening of sterling against the euro during the period,” Reinet said.
Reinet said the increase in BAT’s share price during the quarter reflected the market’s reaction to positive comments from the US Food and Drug Administration after BAT said it welcomed the guidance as a further step toward a sustainable regulatory environment for the US vapour market.
Reinet also received 152m in mid-January after selling a further 3.8 million BAT shares.
By the end of the third quarter, Reinet’s net asset value (NAV) increased by 15 percent to 5.5bn, up from 4.7bn.
The group attributed the increase of the NAV by 714m during the quarter to the increase in the fair value of certain investments, which includes BAT and Pension Insurance Corporation Group, as well as to proceeds received from BAT.
Reinet has investments in both listed and unlisted companies.
Under the unlisted investments, Reinet benefited from an increase in its investment in Pension Corporation.
The investment in Pension Corporation is carried at an estimated fair value of 2bn at the end of December, which is 20percent higher compared with 1.6bn reported at the end of September.
However, its investments in Trilantic Capital Partners and Milestone dipped during the quarter.
The investment in Trilantic and related funds was estimated at 213m in the quarter, down from 229m compared with the second quarter, and Milestone’s investment declined to 71m, down from 77m.
Reinet shares rose 2.55percent on the JSE to close at R304.65 on Friday.