Johann Rupert’s family holding company is set to receive a significant payout from Remgro Ltd.
On October 26, the company will distribute approximately 379.6 million rand (.8 million) following the approval of a final and special dividend by South Africa’s central bank. The final gross dividend is 422 South African cents per share, while the special dividend is 550 cents.
Remgro Declares Substantial Dividends
Remgro Ltd. announced a final gross dividend of 422 South African cents a share and a special dividend of 550 cents. The South African Reserve Bank approved this special payout, allowing shareholders to receive their dividends on schedule. The shares will trade without the right to these dividends starting October 21, with payments to registered shareholders occurring on October 26.
Both dividends apply to Remgro’s ordinary shares and its unlisted B ordinary shares, which are controlled by Rupert Beleggings, the private company of the Rupert family. The B shares, totaling 39,056,987 in issue, will earn 9.72 rand each before tax from the combined dividends.
Financial Context of the Payout
Remgro’s total payout amounts to about 5.4 billion rand (5 million), reflecting a strong financial performance. The company reported a 42% increase in headline earnings, reaching 11.1 billion rand (9 million). This growth was driven by successful deals in its healthcare and fiber operations.
Rupert Beleggings controls Remgro with only 7% of its equity, as each B share carries 10 votes, granting them about 43% of the voting power. This structure allows the Rupert family to maintain significant control over the company despite a modest economic stake.
Upcoming Actions and Share Buybacks
- Remgro’s dividends will be paid on October 26.
- Reinet Investments continues its share buyback program, having repurchased 591,276 shares recently.
- Reinet’s buyback program has totaled 4.42 million shares for approximately 1.92 billion rand (5.5 million) since its announcement.
Johann Rupert’s family holding company is poised for a substantial financial boost from Remgro’s dividends.
