The investment holding company is smarting from Heineken's poor showing in SA and a disappointing contribution from Community Investment Ventures Holdings, the parent of Vumatel and Dark Fibre Africa, which has reported a 96.7% plunge in headline earnings. This has eroded Remgro's interim headline earnings by 39%.
Vodacom’s plans to acquire up to 40% of CIVH’s newly created wholly owned subsidiary, Maziv, which holds its current interests in Vumatel and DFA, are in jeopardy after the Competition Commission recommended in August 2023 that the Tribunal prohibits the proposed transaction. The Tribunal is set to hear the matter in May.
The group is hopeful that the proposed transaction will be given the green light, Remgro CEO Jannie Durand said: “We, together with the CIVH and Vodacom management teams, fundamentally believe in the value of this transaction; the benefits for all stakeholders that stand to be unlocked through its successful completion.
“As a result of these challenges the first half-year period of trading for Heineken Beverages is not deemed to be an accurate reflection of the long-term prospects of the business — meaningful insights from the results will only be forthcoming following a longer trading period for the combined business,” the group insisted.Remgro’s intrinsic net asset value per share — a measure of what an asset is worth — as at 31 December 2023 had declined by 4.6% to R236.95 since 30 June 2023.