Tobacco.org

BAT JSE listing ‘would give market a fillip’  

IF BRITISH American Tobacco (BAT), which is 10,6% held by local investment holding company Remgro, were to list on the JSE, the transaction would be significant for the domestic stock market because BAT’s market capitalisation, at £39bn, was similar to that of Anglo American, one of the JSE’s two largest stocks, according to Simon Raubenheimer, a senior analyst at Allan Gray.

Allan Gray holds in the region of 5% of Remgro and Raubenheimer voiced his confidence in BAT’s ability to sustain and grow profits irrespective of global conditions.

Last month, Remgro released a positive set of annual results and confirmed that a secondary listing for BAT on the South African bourse was under investigation.

Remgro is splitting out its tobacco interests because of changes in the legal and financial environment in Luxembourg. This is where Remgro’s joint venture partner, Richemont, is listed.

Remgro CEO Thys Visser said a South African listing for BAT would mean local shareholders could benefit from the distribution of shares.

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