Reinet gasps as a US smoking clampdown burns BAT
BAT, the sixth-biggest company in the FTSE 100 and maker of brands including Dunhill, Rothmans and Benson & Hedges, has fallen 40 percent this year as the US plans to crack down on cigarette sales.
Chaired by billionaire Johann Rupert, Reinet in the six months to September recorded a net asset value of 4.8bn, 5.6 percent lower than the 5127m recorded in the six months to March.
Reinet holds 68.1 million shares in BAT, which remains the international investment company’s single largest investment position, representing some 2.97 percent of BAT’s issued share capital.
Reinet said on Friday that the BAT share price had fallen to £35.845 as at September 30 on the London Stock Exchange, from £41.31 as at March 31 this year, resulting in a decrease in value of 418m.
It also said that the carry value was also impacted by the weakening of sterling against the euro during the period, the effect of which amounted to some 42m.
“The tobacco industry is currently impacted by the US Food and Drug Administration’s continued regulation efforts and the transformation strategies of industry players seeking to enhance their new generation products,” the company said.