Despite a cleaner portfolio and upcoming liquidity, Reinet trades at a 30%+ discount, what’s keeping sentiment subdued? More from EasyAssetManagement.
Reinet owns valuable investments but its share price is much lower than what those investments are worth. The value of its assets is about €38.54 per share, but the stock trades at around €25.40. That’s a big discount of over 30%.
Reinet is selling one of its biggest investments, a company called PICG, for around £2.82 billion.
Even with more transparency and lower management fees (about 0.9% per year), the stock still trades at a big discount which might mean an opportunity for investors if the market starts to see its true value.
Reinet is undergoing a dramatic transformation on the JSE. Once synonymous with tobacco holdings and pension insurance, the group is now on the verge of becoming a cash-heavy vehicle simplified, liquid, and potentially mispriced.
At the heart of this transformation is the pending sale of its crown jewel, Pension Insurance Corporation Group (PICG), and the completed exit from British American Tobacco. The result? A company where vast majority of the NAV could soon be composed of cash or liquid instruments, and where the shares still trade at a significant discount to NAV.
Reinet is a Luxembourg-based investment holding company listed on the JSE and the Luxembourg Stock Exchange. Historically, it’s been anchored by legacy positions in:
The company has gradually diversified into a wide array of private equity, listed companies, and Asian investment funds.
As of latest SENS announcement, Reinet reported a NAV of €38.54 per share (as of 30 June), while the stock trades at ~€25.40, indicating a discount of over 30%.
While the sale of PICG is still pending regulatory approval, it already brings one major benefit: a clear, market-anchored valuation for what was Reinet’s largest and most complex unlisted asset. If the deal is concluded, Reinet’s portfolio will be dominated by cash and liquid instruments yet the share continues to trade at a discount to NAV, even though that NAV will potentially soon be made up almost entirely of transparent, verifiable assets.
The biggest move this year? Reinet’s planned sale of its 49.5% stake in PICG to Athora Holdings, backed by Apollo Global. The value of the deal implies a ~£2.82B price tag for Reinet’s stake. While the deal implies a haircut to Reinet’s previous internal valuation of PICG, it achieves a clean exit and unlocks liquidity.
Notably, Reinet originally invested ~£1.1B into PICG and has already received £426M in dividends, overall, a positive return on investment
Here’s how Reinet’s portfolio looks going forward:
📈 Listed Investments (€125M)
Unlisted:
PICG (Pension Insurance Corporation Group): Pending regulatory approval for sale to Athora. As of 31 March 2025, Reinet valued its 49.5% stake in PICG at ~€3.72B.
🔒 Private Equity & Partnerships (~€1.2B)
Other
Holding companies often trade at a NAV discount. But in Reinet’s case, the usual justifications, opaque unlisted assets and fee drag are starting to fade.
As a result of these factors, it’s becoming increasingly harder explain the companies large discount to NAV, unless the market believes capital redeployment will be lacklustre or will destroy value. Additionally, perhaps the share class structure that allows management to retain tight control barring shareholder activism has investors worried.
The real question is: what will Reinet do with the cash?
There are no plans for special dividends or share buybacks. Instead, management has made it clear, most recently via SENS, that “Reinet Fund S.C.A., F.I.S. intends using the proceeds from this transaction for its ongoing investment activity.” This seems to be instep Johann Rupert’s observed investment approach: prioritising patient capital and long-term compounding. But it may frustrate investors hoping for a capital return, especially given the scale of the cash inflow.
Nevertheless, execution risk looms, can they find deals as accretive as PICG?
Reinet is on the cusp of becoming a leaner, cash-rich, and far more liquid investment vehicle. With the BAT exit complete and the PICG sale pending, the company is shifting away from complex legacy holdings toward a simplified, transparent balance sheet, one that could be made up mostly of cash and liquid instruments.
Yet, despite this transformation, the share still trades at a material discount to NAV and even, potentially, to its expected cash and liquid assets position should the PICG close. That creates an asymmetric setup: limited downside (thanks to a cash-backed NAV and clearer asset valuation) with significant upside if the discount narrows and investor confidence improves.
A re-rating may be warranted but it may hinge on what Reinet does next.
EasyAssetMangement continues to monitor Reinet in line with our EasyETFs Balanced Actively Managed ETF strategy. If you are looking for exposure to global or AI themed equities check out our EasyETFs Global Equity Actively Managed ETF and our EasyETFs AI World Actively Managed ETF.
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