Further information on Snow Phipps is available at www.snowphipps.com.
CASH AND LIQUID FUNDS
Reinet holds cash on deposit principally in European-based banks and in liquidity funds holding highly rated short-term commercial paper.
Reinet's cash and liquid funds increased from EUR 507 million at 31 March 2021 to EUR 556 million at 30 June 2021. During the quarter, the BAT dividend received and proceeds of sales amounted to EUR 36 million and EUR 28 million respectively, both amounts were accrued as at 31 March 2021. Distributions from several investments amounted to some EUR 33 million. Investments were made of some EUR 20 million in underlying investments, payment of the management fee to Reinet Investment Advisors Limited, which was accrued as at 31 March 2021, amounted to EUR 16 million, payments of loans and interest amounted to EUR 6 million and taxes and other expenses, including movements in exchange rates, amounted to EUR 6 million.
BANK BORROWINGS AND DERIVATIVES BORROWINGS
Reinet has a facility agreement in place with Bank of America, N.A. up to 9 December 2022. The borrowing facilities allow Reinet to drawdown the equivalent of up to GBP 250 million in a combination of currencies to fund further investment commitments. At 30 June 2021, EUR 201 million of this facility had been drawn and is repayable before 30 September 2021 (31 March 2021: EUR 203 million). Some 12 million BAT shares have been pledged as collateral in respect of this loan.
During early 2017, Reinet entered into a GBP 500 million, medium-term financing arrangement with Merrill Lynch International, which runs to 2022. At 30 June 2021, the estimated fair value of the borrowing was EUR 585 million (GBP 502 million) (31 March 2021: EUR 591 million (GBP 503 million)). The GBP 500 million financing transaction includes the purchase by Reinet of put options over approximately 15.5 million BAT shares for a premium of some EUR 92 million (GBP 79 million) payable over the life of the transaction (the 'Premium Loan'). At 30 June 2021, the Premium Loan is carried as a liability at an estimated fair value of EUR 14 million (GBP 12 million) (31 March 2021: EUR 18 million (GBP 16 million)). Some 1.1 million BAT shares have also been pledged to collateralise the Premium Loan and future interest payments. As part of the medium-term financing arrangement and Premium Loan a portion of BAT shares are on loan to Merrill Lynch International. Reinet retains the economic benefit of all shares on loan. The GBP 500 million loan is repayable over a 7 month period starting in July 2021 and ending in February 2022, repayments can be made in cash or by using BAT shares or a combination of both, at the discretion of Reinet.
Reinet has also borrowed ZAR 443 million to fund its investments in South African projects. At 30 June 2021, the estimated fair value of the borrowing was EUR 26 million (31 March 2021: EUR 25 million); the increase in the estimated fair value is due to the strengthening of the South African rand against the euro during the quarter. This loan matures in March 2022. DERIVATIVE ASSETS/(LIABILITIES) - OPTIONS AND FORWARD EXCHANGE CONTRACT
As part of the aforementioned GBP 500 million medium-term financing arrangement, Reinet purchased put options which provide protection should the value of the BAT shares used to secure the borrowings fall below a certain amount. Proceeds received as a result of the put options being exercised could be used to repay the amounts borrowed in full. The put options are carried at their estimated fair value of EUR 96 million at 30 June 2021 (31 March 2021: EUR 114 million). The decrease in the carrying value of the put options reflects the increase in value of the underlying BAT shares, the decrease in the time to maturity together with the weakening of sterling against the euro in the quarter.
Reinet also entered into a forward exchange contract to sell ZAR 200 million, which is carried at its estimated fair value of EUR 2 million (liability) at 30 June 2021 (31 March 2021: EUR 1 million (liability)). The change in value reflects the strengthening of the South African rand against the euro in the quarter.
Reinet holds 340 230 warrants in respect of shares in Selecta. The warrants expire in December 2024 and are carried at the estimated fair value of EUR 1 million (31 March 2021: EUR 1 million).
OTHER (LIABILITIES)/ASSETS MINORITY INTEREST, FEES PAYABLE AND OTHER LIABILITIES, NET OF OTHER ASSETS
The minority interest liability amounts to EUR 3 million at 30 June 2021 (31 March 2021: EUR 3 million) and is in respect of the minority partner's share in the gains and losses not yet distributed arising from the estimated fair value movement of investments in which they have interests.
Fees payable and other liabilities comprise principally an accrual of EUR 9 million in respect of the management fee payable as at 30 June 2021 (31 March 2021: EUR 16 million), a provision for deferred taxes of EUR 7 million (31 March 2021: EUR 6 million) relating to realised and unrealised gains arising from the investments in Trilantic and Snow Phipps, and withholding and corporate taxes of EUR 6 million (31 March 2021: EUR 6 million) relating to the investment in United States land development and mortgages. Accruals and other payables, net of other assets amount to EUR 8 million (31 March 2021: EUR 6 million).
No provision has been made in respect of a performance fee as at 30 June 2021 (31 March 2021: EUR nil) as the conditions required to pay a fee had not been met at that date. In order for a performance fee to be payable at 31 March 2022 the volume weighted average market price of the Company's share determined by taking into account volume and price information on the Luxembourg Stock Exchange, Euronext Amsterdam and the Johannesburg Stock Exchange over the last 20 trading days of the current financial year needs to exceed EUR 18.93.
The performance fee (if applicable) and management fee are payable to Reinet Investment Advisors Limited.
No amount is receivable as at 30 June 2021 in respect of BAT dividends as the record date for the next quarterly dividend is 9 July 2021 (31 March 2021: EUR 37 million).
As at 30 June 2021, there were 195 941 286 ordinary shares and 1 000 management shares of no par value in issue.
As at 30 June 2021, the Company held 11 651 395 ordinary shares as treasury shares. The voting and dividend rights attached to treasury shares are suspended. Therefore, the total number of voting rights at 30 June 2021 was 184 290 891.
The Company's ordinary shares are listed and traded on the Luxembourg Stock Exchange (symbol 'REINI', Thomson Reuters code REIT.LU), on Euronext Amsterdam (symbol 'REINA', Thomson Reuters code REIT.AS) and on the Johannesburg Stock Exchange (symbol 'RNI', Thomson Reuters code RNIJ.J) with the ISIN number LU0383812293; the listing on the Johannesburg Stock Exchange is a secondary listing. The Company's ordinary shares are included in the 'LuxX' index of the principal shares traded on the Luxembourg Stock Exchange.
Reinet Investments Manager S.A.
For and on behalf of Reinet Investments S.C.A.
Reinet Investments S.C.A. (the 'Company') is a partnership limited by shares incorporated in the Grand Duchy of Luxembourg and having its registered office at 35, boulevard Prince Henri, L-1724 Luxembourg. It is governed by the Luxembourg law on securitisation and in this capacity allows its shareholders to participate indirectly in the portfolio of assets held by its wholly-owned subsidiary Reinet Fund S.C.A., F.I.S. ('Reinet Fund'), a specialised investment fund also incorporated in Luxembourg. The Company's ordinary shares are listed on the Luxembourg Stock Exchange, Euronext Amsterdam and the Johannesburg Stock Exchange; the listing on the Johannesburg Stock Exchange is a secondary listing. The Company's ordinary shares are included in the 'LuxX' index of the principal shares traded on the Luxembourg Stock Exchange. The Company and Reinet Fund together with Reinet Fund's subsidiaries are referred to as 'Reinet'.
Cautionary statement regarding forward-looking statements This document contains forward-looking statements which reflect the current views and beliefs of the Company, as well as assumptions made by the Company and information currently available. Words such as 'may', 'should', 'estimate', 'project', 'plan', 'believe', 'expect', 'anticipate', 'intend', 'potential', 'goal', 'strategy', 'target', 'will', 'seek' and similar expressions may identify forward-looking statements. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside Reinet's control. The Company does not undertake to update, nor does it have any obligation to provide updates or to revise, any forward-looking statements.
Reinet Investments S.C.A. R.C.S. Luxembourg B 16 576 Legal Entity Identifier : 222100830RQTFVV22S80 Registered office: 35, boulevard Prince Henri, L-1724 Luxembourg, Tel. (+352) 22 42 10, Fax (+352) 22 72 53 Email: email@example.com, website: www.reinet.com ----------------------------------------------------------------------------------------------------------------------- End of ad hoc announcement -----------------------------------------------------------------------------------------------------------------------
1221481 26-Jul-2021 CET/CEST
(END) Dow Jones Newswires
July 26, 2021 01:30 ET (05:30 GMT)