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Does Reinet have to sell their BAT stake?

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john_1
Super Contributor
I heard some where REI has to sell BAT in the next 3 years..is this correct? And if so why?
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8 REPLIES 8
SimonPB
Valued Contributor
ya .. some story about BTI being inweard listed, hence is part of a companies off shore allowance (15% I think is the max for asset swaps) .. they were given a couple of years rather then the usual 2 weeks .. but there is talks around changing the status ..
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john_1
Super Contributor
So its just exchange controll.... does it only effect SA shareholders?
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SimonPB
Valued Contributor
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john_1
Super Contributor
Sorry for being obtuce... Does reinet have to dispose of its BAT shares because of its dual listing or does the SA investors have to dispose of their allocatedd BAT shares.. help please. I have read all the blurb on www.reinet.com but can find no helpful info.
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AJT
Super Contributor
REI has a primary listing on the Luxembourg stock exchange and my understanding is that a stipulation for being listed there, they need to unbundle their BAT interests - not sure if this is correct, can anyone comment...
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john_1
Super Contributor
Ok . As always it helps to go to the horses mouth...Reinet has to reduce their portfolio holding of any one company to no more than 30% within 4 years. Currently BAT represents 80% of the companies value. So either they have to serriouly be very very clever and make the cash grow by massive amounts or they will be forced sellers of BAT stock...this at a time when BAt is one of the world best Performers.
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john_1
Super Contributor
ok because I am a maths plonker please check this for me. Reinet earned 426mill euro in Divs this year from BAT ( i think) If they sold down their stake to 30% what would there earnings shortfall be? I get 270 mill
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john_1
Super Contributor
werner I know you have researched this.
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