{"id":825897,"date":"2025-05-28T09:30:00","date_gmt":"2025-05-28T07:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=825897"},"modified":"2025-05-28T09:21:35","modified_gmt":"2025-05-28T07:21:35","slug":"johann-rupert-sitting-on-a-r37-billion-pile-of-cash","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/825897\/johann-rupert-sitting-on-a-r37-billion-pile-of-cash\/","title":{"rendered":"Johann Rupert sitting on a R37 billion pile of cash"},"content":{"rendered":"\n

Johann Rupert-controlled Reinet Investments is sitting on a massive pile of cash following the sale of its large stake in British American Tobacco (BAT).<\/p>\n\n\n\n

The company, which the Ruperts manage as general partners, is one of three investment funds controlled by the Rupert patriarch, who acts as the executive chairman.\u00a0<\/p>\n\n\n\n

The family\u2019s wealth was built on tobacco, with Rupert\u2019s father, Anton Rupert, establishing a tobacco company, Voorbrand Tobacco Company, roughly 80 years ago. <\/p>\n\n\n\n

Voorbrand would become Rembrandt, which entered the South African cigarette and tobacco industry in 1948, and was listed on the JSE a few years later. <\/p>\n\n\n\n

After the group diversified and formed international luxury goods brand Richemont and South African-focused Remgro, Reinet Investments was created in 2008 to house the group\u2019s stake in BAT.<\/p>\n\n\n\n

The company had 84.3 million shares in BAT. Over the years, Reinet received over \u20ac2 billion (R40 billion) in dividends, used shares as collateral to secure borrowings, and sold 36 million shares to provide liquidity when needed.\u00a0<\/p>\n\n\n\n

In March 2024, the group held some 48.3 million BAT shares, which were then sold in late 2024 and early 2025, with the group realising proceeds of \u20ac1,627 million (R33 billion). <\/p>\n\n\n\n

This move came despite the investment in BAT generating an annualised return for Reinet of over 11%. <\/p>\n\n\n\n

Looking at the group\u2019s balance sheet following the sale, the group substantially increased its cash and liquid funds from \u20ac357 million (R7.2 billion) in 2024 to \u20ac1,819 million (R37 billion) a year later. <\/strong><\/p>\n\n\n\n

Cash and liquid funds now make up 26.3% of all of Reinet\u2019s investments, increasing from the 5.7% a year earlier. <\/p>\n\n\n\n

This gives the group a substantial amount to invest in further companies, which should help further Rupert\u2019s empire. <\/p>\n\n\n\n

Reinet shareholders should not expect a hefty dividend payout, as Rupert is notorious for not giving cash back to shareholders.<\/p>\n\n\n\n

In the group\u2019s results for the year ended 31 March, Rupert said that cash will ensure the group\u2019s ability to meet both existing and future investment commitments. <\/p>\n\n\n\n

These liquid funds are held in several currencies and placed with highly-rated banks and short-term money market funds.<\/p>\n\n\n\n

Where to from here?\u00a0<\/strong><\/h2>\n\n\n
\n
\"\"<\/a><\/figure><\/div>\n\n\n

Rupert noted that markets were relatively stable in the reporting year compared to 2022 and 2023 despite the Ukraine and Middle East crises.<\/p>\n\n\n\n

However, 2025 to date has seen much higher market volatility with the potential for changes in global trade tariffs. <\/p>\n\n\n\n

Rupert said the uncertainty is bad for capital markets and makes investing far more challenging. <\/p>\n\n\n\n

Nevertheless, the net asset value of \u20ac6.9 billion (R140 billion) reflects a compound growth rate of 9% per annum in euro terms. <\/p>\n\n\n\n

The group\u2019s board of directors thus proposed a dividend of \u20ac0.37 per share, payable in September 2025, which represents a 5.7% year-on-year increase.\u00a0\u00a0<\/p>\n\n\n\n

\u201cRecognising the potential for continued market volatility and global instability, we will maintain a measured approach to capital deployment,\u201d said Rupert. <\/p>\n\n\n\n

\u201cWe will prioritise support for our current portfolio investments while selectively exploring new opportunities and partnerships that promise long-term capital growth. <\/p>\n","protected":false},"excerpt":{"rendered":"

The Rupert-controlled Reinet Investments is sitting on a big pile of cash following the sale of its stake in British American Tobacco. <\/p>\n","protected":false},"author":95,"featured_media":715466,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[19951],"class_list":["post-825897","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-reinet"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/825897","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=825897"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/825897\/revisions"}],"predecessor-version":[{"id":825910,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/825897\/revisions\/825910"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/715466"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=825897"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=825897"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=825897"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}