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REMGRO LIMITED

REM JSE Listed

Investment Analysis: Remgro Limited (JSE: REM)

Date: 9 January 2026 Share Price: ~R183.54 (18,354c) Analyst Role: Senior Equity Analyst, JSE

Step 1: Data Gathering & Source Verification

I have reviewed the most recent financial disclosures and significant SENS announcements. The company has been extremely active in corporate structuring over the last six months.

  • Annual Financial Statements: Reviewed the Audited Annual Financial Statements for the year ended 30 June 2025 (Released 23 September 2025).
  • SENS Activity (L12M):
  • Maziv/Vodacom Deal (26 Nov 2025): Announcement that all conditions precedent for the acquisition of an interest in Maziv by Vodacom have been fulfilled. This is a critical liquidity event.
  • Mediclinic Restructuring (1 Dec 2025): Cautionary announcement regarding a potential restructuring of the interest in Mediclinic.
  • Special Dividend & BAT Exit (Sept/Oct 2025): Disposal of the entire British American Tobacco (BAT) stake and declaration of a 200 cents special dividend.
  • Unbundling (Sept 2025): Distribution of eMedia Holdings shares to shareholders.

Data Sources:

  • Annual Results (Sep 2025): https://www.remgro.com/ar2025/pdf/eng/Remgro-in-2025.pdf
  • SENS (Maziv/Vodacom): https://www.sharedata.co.za/v2/Scripts/News.aspx?c=REM&x=JSE (Ref: Announcement dated 26 November 2025)

Step 2: Metric Extraction

| Metric | Value | Notes | | --- | --- | --- | | Market Cap | ~R97.1 Billion | A heavy-weight investment holding company. | | Dividend Yield (L12M) | ~1.87% (Ordinary) | Total Yield ~3.0% if Special Dividend is included.


• Ordinary: 344c (Interim 96c + Final 248c).


• Special: 200c (Paid Oct 2025).


Note: The yield is low relative to peers because Remgro focuses on capital growth and NAV expansion rather than high payouts. | | Liquidity Check | Highly Liquid | Average daily value traded >R170m. It is a Top 40 constituent and highly liquid. | | P/E Ratio | ~13.0x | Secondary Metric. For Remgro, earnings can be volatile due to corporate actions. The market values it primarily on the discount to NAV. | | Intrinsic NAV (INAV) | R292.34 per share | Critical Metric. As at 30 June 2025.


The stock is trading at a massive ~37% discount to INAV (Price ~R183 vs INAV R292). |

Step 3: Operational & Strategic Analysis

Business Overview Remgro is a diversified investment holding company chaired by Johann Rupert. It does not run businesses day-to-day but acts as an active shareholder.

  • Core Assets:
  • Healthcare: Mediclinic (44.6% stake) – The largest contributor to INAV.
  • Infrastructure/Telecoms: CIVH (owns Vumatel & DFA). This is the growth engine.
  • Consumer: RCL Foods (Rainbow Chicken, Flora, etc.) and Siqalo Foods.
  • Financials: OUTsurance Group and a smaller stake in FirstRand (mostly sold).

Performance Trend

  • Earnings: Strong Recovery. Headline Earnings rose 38.6% to R7.8 billion (FY2025). This was driven by improved contributions from Mediclinic (post-acquisition costs) and higher interest income at the centre.
  • Strategic Execution: The company is delivering on its promise to "simplify" the portfolio.
  • Sold: British American Tobacco (completely exited).
  • Unbundled: eMedia Holdings.
  • Merged: The Vodacom/Maziv deal is finally closing, which values the fibre assets highly and injects cash/liquidity into CIVH.

Sector Context

  • Holding Company Discount: Globally and locally, investment holding companies trade at a discount to the sum of their parts (INAV). However, Remgro's discount (~37-45%) is historically wide.
  • SA Inc. Sentiment: As a proxy for the South African economy (banks, food, infrastructure, hospitals), Remgro is highly sensitive to local sentiment. The stabilizing GNU government and lower inflation outlook for 2026 are tailwinds for its underlying assets.

Step 4: The Verdict

Bull Case (Why Buy): The "Free" Assets. At a ~37% discount to NAV, you are essentially paying for Mediclinic and CIVH (Vumatel) and getting OUTsurance, RCL Foods, and the cash pile for free. The conclusion of the Vodacom/Maziv deal is a massive catalyst—it validates the valuation of the fibre assets and provides capital to roll out more fibre, securing future growth. The special dividend proves management is willing to return excess cash (from the BAT sale) to shareholders rather than hoarding it.

Bear Case (Why Sell): The "Discount Trap." Remgro has traded at a discount of >30% for years. Value traps can persist indefinitely if there isn't a mechanism to close the gap. While they are unbundling smaller assets (eMedia), the bulk of the value is now in unlisted assets (Mediclinic, CIVH), which makes the NAV calculation harder for the market to verify and "trust," potentially justifying the discount.

Fair Value Estimate: R220.00 - R235.00 Targeting a narrowing of the discount to a more reasonable ~20-25%.

Final Rating: BUY The combination of the Maziv deal approval (liquidity event) and the excessive discount makes this a compelling value play. It is a lower-risk way to play the "SA Inc" recovery story.

AI Generated Analysis Last Updated: 2026-01-14