JSE-listed and Luxembourg-based Reinet Investments today announced that its indirect subsidiary, Reinet Jersey Holdings Limited (RJHL), has agreed to sell more than 43.3 million ordinary shares in British American Tobacco (BAT) at a price of £28.20 (around R650) per share to institutional investors, raising gross proceeds of some £1.221 billion (approximately R28.3 billion).
The Placing was completed through an aftermarket accelerated bookbuild process, which commenced yesterday, and J.P. Morgan Securities acted as sole global coordinator and bookrunner in connection with the Placing.
Reinet Investments S.C.A. is a Luxembourg-based investment vehicle that was demerged from the Swiss luxury goods company Richemont in 2008 and is chaired by South African billionaire, Johann Rupert.
At the time of Reinet's last reporting date of 30 September 2024, the interest in BAT comprised 24% of the net asset value of Reinet, being approximately 48.3 million BAT ordinary shares.
Separate from the Placing, during November and December 2024, RJHL sold 5 million BAT ordinary shares through a dribble-out process on the London Stock Exchange realising gross proceeds of some £148.5m.
“Some 11.1 million BAT ordinary shares previously pledged by RJHL as security for amounts drawn under certain credit facility arrangements of Reinet Fund have been released following the pre-payment of all the outstanding loan obligations early in January 2025. These BAT ordinary shares have been included in the Placing,” Reinet said in a statement.
“Following the settlement and completion of the Placing which is expected to take place on 16 January 2025, Reinet and its subsidiaries will have fully exited their position in BAT and will no longer hold any interest in BAT.”
Reinet said it expected to announce the 31 December 2024 net asset value of Reinet Fund on or about 23 January 2025, with Reinet's management statement for the quarter ended 31 December 2024 expected to follow shortly thereafter.
Reinet Fund intends using the proceeds from the Placing for its ongoing investment activity, and BAT will not receive any proceeds from the Placing.
Reinet was established on 21 October 2008 when the former Richemont SA changed its legal form to that of a partnership limited by shares and adopted the name Reinet Investments S.C.A.
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