Jump to full article: Sunday Times (za), 2008-08-10
Author: Marcia Klein
Intro: British American Tobacco (BAT) is set to become South Africa’s biggest listed company, challenging stalwarts like mining giant Anglo American for top spot on the JSE.
At current market prices, BAT, which will have its secondary listing on the JSE, is valued at about R560-billion. Its primary listing will be in London.
The new listing is a result of a massive, complex restructuring of the Rupert family-controlled Swiss luxury goods group Richemont and its local investment group Remgro.
The restructuring will also bring about a massive payout to shareholders — R60-billion in the case of Remgro and just less than R120-billion for those with shares in Richemont .
For the first time in the history of the Rupert family empire, neither Remgro nor Richemont will be invested in tobacco. . . .
While Remgro has got rid of tobacco, Visser is optimistic about the future of BAT.
The tobacco business remains sound and BAT is a good company with a footprint in developed and developing economies, he said.
. . .
But not everyone is happy.
Yussuf Saloojee of the National Council Against Smoking said BAT’s listing is “regrettable, not only because of the product it sells but also because of its conduct”.
He said the company sells its products to young people and has broken an advertising ban on a number of occasions.
He encouraged people not to invest in the company as it is not socially responsible.
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