JOHANNESBURG – Reinet Investments on Tuesday reported a marginal decline in its net asset value (NAV) during the six months to September on the lower value of its investment in British American Tobacco (BAT), attributed to euro weakness.
Reinet, which is chaired by billionaire Johann Rupert, said that the group’s NAV had dropped by 1.8 percent in September or €85 million (R1.39 billion) to €4.8bn, while the NAV per share was €25.44 from €25.30 in March of this year.
The group’s investment in BAT, the world’s second-biggest cigarette maker after Philip Morris, had marginally dropped to €2.30bn from €2.52bn in March due to the weaker euro.
“The BAT share price on the London Stock Exchange decreased from £31.94 (R610.20) at March 31, 2019, to £30.08 at September 30, 2019, resulting in a decrease in value of €140m; the carrying value is also impacted by the weakening of sterling against the euro during the period, the effect of which amounts to some €77m,” said Reinet.
BAT, the London headquartered tobacco giant, accounted for 48.6 percent of Reinet’s NAV, said Reinet.