DURBAN – Reinet Investments has reported a 16.67percent decline in its net asset value per share for the third quarter to end December to 20.10 (R317.41) a share, down from 24.71 in the prior period.
The group said that the drop was a result of its total asset value declining by 944million (R14.9billion) largely on the back of the decrease in the share price of British American Tobacco (BAT), estimated fair value of Pension Insurance Corporation Group and the creation of a provision for the maximum cost of the buyback of the company’s ordinary shares.
The group said it spent 27.4m during the quarter in a share buyback programme – repurchasing 2.09million ordinary shares – and made commitments totalling 108m in respect of new and existing investments.
It said that it also funded a total of 85m during the quarter.
However, it received 37m worth of dividends from BAT during the period.
“Offsetting these decreases in value are dividends received and receivable from British American Tobacco and increases in the estimated fair value of certain investments, including an increase in the value of the derivative asset associated with the loan financing,” the group said.
Reinet has invested in both listed and unlisted companies and its investment in BAT remains its largest investment.
The group said it sold 44000 BAT shares in the quarter for total proceeds of about 1m, to take the total tally it currently holds in BAT to 68million shares or 2.96percent of the tobacco giant’s issued share capital.
Reinet Investments declined 2.44percent on the JSE yesterday to close at R208.66.