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Key Points
- Reinet’s net asset value rose 11.85% to €6.92 billion ($7.89 billion), driven by strategic portfolio shifts and steady compound growth since 2009.
- A $1.5 billion exit from British American Tobacco signals Reinet’s pivot toward broader diversification under Johann Rupert’s active leadership.
- PIC trimmed its Reinet stake below 15%, reflecting strategic rebalancing amid evolving investor sentiment and Reinet’s long-term value focus.
Reinet Investments, the Luxembourg-based investment firm controlled by South Africa’s richest man, Johann Rupert, has reported a notable increase in its net asset value (NAV) for the fiscal year ending March 31, 2025. The rise comes as the firm gains from its core holdings and continues to shift away from tobacco assets, which were once central to its portfolio.
The NAV climbed to €6.92 billion ($7.89 billion), up 11.85 percent from €6.18 billion ($6.73 billion) the previous year. This growth reflects a steady compound annual growth rate (CAGR) of 8.4 percent, increasing from €1.85 billion ($2.1 billion) in March 2009, including dividends paid. The firm saw an annual increase of €733 million ($835.74 million) in NAV.
Reinet NAV drops despite portfolio growth
Despite the overall increase, Reinet's NAV slipped by €13 million ($14.8 million) in the fourth quarter, from €6.93 billion ($7.9 billion) in December 2024. The NAV per share stood at €40.38 ($46), based on 171.3 million shares in circulation. This value reflects Reinet’s holdings, including its stake in Pension Insurance Corporation Group Limited, as well as other investments and liabilities.
These results come as Reinet continues to adjust its portfolio following a significant $1.5 billion divestment from British American Tobacco Plc. Once a cornerstone of its assets, tobacco no longer dominates Reinet’s investments, signaling a strategic shift toward greater diversification. Now, the firm's largest exposure is to Pension Insurance Corporation Group Ltd, a UK-based life insurer, alongside other private equity and alternative investments.
As part of these shifts, the Public Investment Corporation (PIC), Africa’s largest asset manager, reduced its stake in Reinet to below 15 percent, lowering its voting power. While this is viewed as a routine portfolio adjustment, it also reflects the changing investor sentiment in response to Reinet's evolving strategy.
Reinet's diversified portfolio drives value
Founded after its demerger from Richemont in 2008, Reinet has transformed from a tobacco-focused firm into one that prioritizes long-term value creation across multiple sectors. Rupert, who holds a 24.9 percent stake in the company, sees this investment contribute to his $15.5 billion fortune, according to the Bloomberg Billionaires Index.
Despite market uncertainties, Reinet's progressive dividend policy and its active management approach have positioned it well for continued, sustainable growth. By maintaining a diversified portfolio and focusing on long-term returns, Reinet has successfully enhanced its NAV and continues to deliver value to its shareholders.
