JOHANNESBURG – Investment group Remgro jumped 7.6 percent on the JSE in anticipation of a boost to the company’s value following news of the planned restructuring of JSE-listed Rand Merchant Investment Holding (RMH).
RMH chief executive Herman Bosman late on Tuesday suggested the group give shareholders its 34.1 percent stake in FirstRand, the parent company of First National Bank valued at R130 billion, as part of restructuring of the group’s portfolio of assets and liabilities.
RMH’s share price surged 5.21 percent to close at R32.72. Remgro ended the day 6.12 percent higher at R196.
However, FirstRand tumbled on the news, falling 1.53 percent and closing at R67.50.
Bosman said the group planned to sell off its property assets and would remain listed on the JSE until the property process was complete.