finweek

COVER STORY | Remgro eases some pressure in 2021

accreditation
Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
0:00
play article
Subscribers can listen to this article

A 27% lift in Remgro’s share price since January is an indication that patient but potentially frustrated Remgro shareholders have seen the company turn a corner. With Covid-19 being the latest in a barrage of bad news for SA Inc, the last five years have not been kind to Remgro’s domestically focused portfolio, but management is taking action to make the best of a difficult situation.

The challenges facing Remgro are manifold. When the market is under pressure, investors prefer a more direct route to assets, eschewing the danger of discounts to net asset value (NAV) that plague holding company structures and bog down growth in their invested capital.

When markets turn, however, windfalls can be created from narrowing discounts to NAV and the sale or unbundling of underlying assets – by the holding company simply selling another listed asset at its market-related value, shareholders in the holding company receive an instant uplift in what they bought indirectly because the discount disappears.

Support independent journalism
Subscribe to News24 for just R75 per month to read all our investigative and in-depth journalism.
Subscribe
Already a subscriber? Sign in
Rand - Dollar
14.52
-1.6%
Rand - Pound
20.22
-1.2%
Rand - Euro
17.18
-0.9%
Rand - Aus dollar
10.75
-1.2%
Rand - Yen
0.13
-0.7%
Gold
1,804.29
-0.4%
Silver
25.16
-0.9%
Palladium
2,653.77
+0.0%
Platinum
1,009.29
-1.7%
Brent Crude
70.38
-2.8%
Top 40
62,200
-0.9%
All Share
68,371
-0.8%
Resource 10
69,148
-3.6%
Industrial 25
86,202
-0.0%
Financial 15
13,560
+3.6%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Should pension fund members be allowed to access their savings before retirement?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, it's their money to do with as they please.
33% - 188 votes
No, more people will end up without enough savings in retirement.
37% - 209 votes
Depends on how big the withdrawal limits will be.
31% - 175 votes
Vote