Remgro FY HEPS down 8.9%

Investment group Remgro has faced a challenging year with its annual headline earnings per share dropping by 8.9% to 510 cents due to the ongoing impact of the coronavirus pandemic. Despite the decrease in earnings, the company remains focused on creating value for its stakeholders and the community. Remgro's CEO, Jannie Durand, recently sat down with CNBC Africa to discuss the current operating environment, the company's strategy to unlock value through unbundling, and the shift towards investing in the 'understood' space. Durand highlighted the positive impact of Remgro's donation of R500 million to the South African SME Relief Trust to help businesses navigate the challenges brought on by the pandemic. He expressed pride in the support provided to businesses and the community despite the dent it made in the company's earnings. The CEO emphasized the importance of responsibility and vaccination in managing the uncertainty posed by the virus and expressed optimism for a brighter future as the situation improves. Regarding Remgro's efforts to narrow the discount of its net asset value (NAV), Durand admitted that the transaction to bundle FirstRand did not have the desired results as the discount remained at 35%. However, he affirmed the company's commitment to unlocking value and hinted at potential future unbundling initiatives to achieve this goal. Durand also discussed the success of a recent unbundling introduced to the market through Remgro's investments in RMI, which saw a significant increase in share price, signaling a positive response from investors. Durand refrained from commenting on specific future unbundling plans but indicated a strategic shift towards investing in the 'understood' space. By focusing on assets in this sector, Remgro aims to enhance flexibility, optionality, and accessibility for investors, ultimately driving value creation and facilitating corporate transactions in a more favorable environment. On the topic of one of Remgro's investee companies, Distell, being a takeover target of Heineken, Durand remained tight-lipped about the transaction's details. He mentioned that an announcement is expected by the end of September and declined to provide further insights to avoid any legal implications. Durand emphasized the need to wait for official information before making any comments on the potential deal and reassured that he would share his thoughts once more details are available. In conclusion, Remgro's strategy to unlock value through unbundling and transition to the 'understood' space reflects a proactive approach to creating value for shareholders and optimizing investment opportunities. As the company navigates the evolving business landscape and pursues strategic initiatives, investors will be closely watching for developments on future unbundling plans and potential growth opportunities in the 'understood' space.