Johann Rupert’s R108 billion war chest

With the sale of its share in UK-based Pension Insurance Corporation (PIC) and British American Tobacco (BAT), Johann Rupert’s Reinet will have roughly R108 billion in cash to invest.

The Luxembourg-based Reinet is one of the three major companies in which the Ruperts have a significant stake, alongside Richemont and Remgro.

The Rupert family maintains control of Reinet as a general partner, with Johann Rupert acting as executive chairman.

Following media speculation, the group has announced that it has agreed a deal with Athora Holding UK to sell PIC.

Reinet holds just under 50% of PIC, which manages £50.9 billion (R1.2 trillion at current exchange rates) of pensions for nearly 400,000 policyholders.

Athora operates in a similar field as a pan-European savings and retirement services group, and manages €76 billion of assets (R1.5 trillion) on behalf of 2.8 million policyholders.

The acquisition by Athora forms part of a broader transaction structure, involving the sale of all its shares owned by Abu Dhabi Investment Authority, CVC Capital Partners, HPS Investment Partners, employees, and other shareholders.

The transaction, which is subject to regulatory approval, is expected to close in early 2026.

The purchase price for PIC’s fully diluted share capital will rise from the an estimated £5.7 billion (R137 billion) to £5.9 billion (R142 billion), including expected dividends ahead of closing.

A further announcement over the sale will be published once regulatory approval has been obtained and all other steps to completion have been finalised.

Reinet first invested in PIC in 2012 via an initial £400 million (R9.6 billion) commitment. 

Following participation in subsequent primary and secondary share purchases, Reinent’s total investment stood at £1.1 billion (R27 billion).

It has grown to the largest asset owned Reinet, and represents 53.7% of its Net Asset Value (NAV), according to the group’s most recent financial statements.

The group has received £426 million (R10 billion) in dividends from PIC, and will pocket roughly £2.9 billion (R70 billion) from the proposed sale.

Reinet said that it intends to use the proceeds from the transaction for its ongoing investment activity.

Counting the cash

The sale of PIC is now Reinet’s second major asset sale in as many years after it sold off its remaining shares in BAT less than a year ago.

The Rupert family trace much of their wealth to tobacco, with Anton Rupert, Johann’s father, establishing the Voorbrand Tobacco Company in the 1940s. 

Voorbrand would merge into Rembrandt, a major player in the tobacco industry, in 1948. It would list on the JSE only a few years later.

The company would then be split into three entities: luxury goods company Richemont, South African-focused Remgro, and Reinet, which would house its tobacco interests.

Reinet previously held 48.3 million BAT shares in March 2024, but these were sold in late 2024 and early 2025, pocketing the group €1,627 million (R33 billion). 

The sale of BAT grew Reinet’s cash and liquid funds, which at €1,819 million (R38 billion) account for 26% of the group’s NAV.

Rupert noted that the large amount of cash following the sale of its stake in BAT will ensure the group’s ability to meet existing and future investment commitments.

Following the sale of PIC, Reinet will have a war chest of roughly R108 billion, with about 80% of the group’s NAV sitting in cash.