Suddenly, Reinet Investments, the less well known of the Rupert family-controlled ventures on the JSE, is the subject of much intrigue. It’s usually luxury goods conglomerate Richemont or investment company Remgro that grab the headlines.
But reports from London suggest US investment giant Apollo is backing a takeover bid for UK-based financial services business Pension Insurance Corp (PensCorp) — which represents more than half of Reinet’s intrinsic value.
Speculation about the takeover follows Reinet’s decision at the end of 2024 to sell its remaining holding in British American Tobacco. If Reinet is indeed mulling a sale of its 49.5% stake in PensCorp, the investment group could be left with a gigantic cash pile that dwarfs its remaining portfolio of investments in various private equity and specialist investments.
At last count, Reinet valued its stake in PensCorp — which recently started paying dividends — at €3.7bn. PensCorp would certainly rank as one of the best investments made by any Rupert family-controlled venture. Reinet has invested just over €1.3bn in the specialist pension fund insurer since making its first significant foray in mid-2012.
It’s worth remembering, though, that this is not the first time PensCorp has been the subject of takeover speculation. In late 2023, reports identified three suitors — Carlyle, KKR and Apollo — that were said to be considering separate bids.
The market’s enthusiastic reaction on Monday to the latest takeover talk suggests there’s more gravitas to the speculation this time. Still, there seems little reason for Reinet to let go of a dividend-churning, defensive business — unless the price tag truly dazzles.
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