RMB Holdings’ (RMH) share price shot up 8.62% yesterday morning to 63 cents after it declared a special dividend of 23.5 cents per share as it continues to monetise its assets.
In results for the year to September 30, the company said it would like to return the settlement of the Atterbury base loan received together with settlements received from Integer 3, amounting to R254 million.
In addition, RMH wished to return R73m of the cash retained for ongoing operations, resulting in a total dividend of R327m. The special dividend was declared on December 12.
On October 10, 2022, RMH had paid a special dividend of 141.7 cents per share.
After the unbundling of RMH’s last financial services investment, the 34% interest in FirstRand in June 2020, the most significant asset left was its investment in RMH Property.
RMH has so far returned some 69% of its June 2020 net asset value in the form of special dividends.
RMH’s share price on September 30 of 49 cents was 53% of the net asset value of 104 cents on the same date, but it is not out of the ordinary to trade at a discount to net asset value.
As at September 30, the group had liquidity of R239m (March 31, 2023: R206m) comprising unrestricted cash, cash equivalents and listed unit trusts.
RMH’s increase in net asset value to R1.45bn from R1.42bn as at March 31 was due mainly to Atterbury’s net asset value improving to R1.82bn from R1.63bn and a decrease in value of Integer to R167m from R204m due to high interest rates, a R13.7m cash repayment and some share buybacks.
Of RMH’s net asset value, some R547m comprised money market and investments, R204m was held in Integer, R97m in Divercity and R476m in the investment in Atterbury.
On August 23, RMH, through its subsidiary RMH Property Holdings, which owns 50% of Integer Property 3, sold its 33.3% shareholding and loan account in Malinick Properties to existing shareholders for R50m.
The purchase price was equal to the March 31, 2023, external valuation. The proceeds were used to settle a portion of the RMH Holdco 4’s disproportionate shareholder loan account.
BUSINESS REPORT