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    REINI   LU0383812293

REINET INVESTMENTS S.C.A.

(REINI)
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End-of-day quote. End-of-day quote LUXEMBOURG STOCK EXCHANGE - 09/17
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09/14REINET INVESTMENTS S C A : hoc information - Notification of Managers' Transaction
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09/14REINET INVESTMENTS S C A : Notification of managers' transaction
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09/14Notification of managers' transaction
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Reinet Investments S C A : Management Statement for the first quarter ended 30 June 2021

07/26/2021 | 01:38am EDT

COMPANY ANNOUNCEMENT FOR IMMEDIATE RELEASE

26 JULY 2021

MANAGEMENT STATEMENT FOR THE FIRST QUARTER ENDED 30 JUNE 2021

The Board of Reinet Investments Manager S.A. announces the results of Reinet Investments S.C.A. for the quarter ended 30 June 2021.

Key financial data

  • Reinet's net asset value of € 5 155 million reflects a compound growth of 9.1 per cent per annum in euro terms, since March 2009, including dividends paid
  • The net asset value at 30 June 2021 reflects a decrease of € 229 million or 4.3 per cent from € 5 384 million at 31 March 2021
  • Net asset value per share at 30 June 2021: € 27.97 (31 March 2021: € 29.21)
  • Commitments totalling € 253 million in respect of new and existing investments made during the quarter, and a total € 20 million funded during the quarter

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: info@reinet.com, website: www.reinet.com

BUSINESS OVERVIEW

Net asset value

The net asset value ('NAV') at 30 June 2021 comprised:

30 June 2021

31 March 2021

€ m

%

€ m

%

Listed investments

British American Tobacco p.l.c. Other listed investments

Unlisted investments

Pension Insurance Corporation Group Limited

Private equity and related partnerships Trilantic Capital Partners

Fund IV, Fund V, Fund VI, TEP, TEP II, related general partners and management companies

Snow Phipps

Fund II, Fund III, Fund IV, co-investment opportunities and management company participation

Asian private equity companies and portfolio funds

Milestone China Opportunities funds, investment holdings and management company participation

Prescient China funds and investment management company

Grab Holdings Inc. Asia Partners fund

Specialised investment funds

Vanterra C Change TEM and holding companies

NanoDimension funds and co-investment opportunities

GAM Real Estate Finance Fund Other fund investments

United States land development and mortgages Diamond interests

Other investments Total investments

Cash and liquid funds

Bank borrowings and derivatives

Borrowings

Net derivative assets

Other (liabilities)/assets

Minority interest, fees payable and other liabilities, net of other assets

Net asset value

1 831

35.5

1 826

33.9

108

2.1

96

1.8

2 514

48.8

2 755

51.2

793

15.4

776

14.4

211

4.1

179

3.3

143

2.8

161

3.0

250

4.8

242

4.5

50

49

149

142

42

43

9

8

189

3.7

194

3.6

18

17

83

84

3

9

85

84

33

0.6

33

0.6

15

0.3

17

0.3

69

1.3

69

1.3

5 363

104.0

5 572

103.5

556

10.8

507

9.4

(826)

(16.0)

(837)

(15.5)

95

1.8

114

2.1

(33)

(0.6)

28

0.5

5 155

100.0

5 384

100.0

All investments are held, either directly or indirectly, by Reinet Fund.

2

INFORMATION RELATING TO CURRENT KEY INVESTMENTS AT 30 JUNE 2021

Total

Remaining

realised and

Committed

committed

Invested

Realised

Current fair

unrealised

amount(1)

amount(1)

amount(2)

proceeds(2)

value(1)

value(3)

in millions

in millions

in millions

in millions

in millions

in millions

Listed investments

British American

EUR

-

-

1 739

2 792

1 831

4 623

Tobacco p.l.c.

GBP

-

-

1 418

2 333

1 570

3 903

Other listed investments

EUR

-

-

84

68

108

176

USD

-

-

96

78

128

206

Unlisted investments

Pension Insurance

Corporation Group

EUR

1 291

-

1 309

-

2 514

2 514

Limited

GBP

1 107

-

1 107

-

2 155

2 155

Trilantic Capital Partners

EUR

584

234

368

458

211

669

Euro investment

EUR

87

20

67

143

33

176

US dollar investment(4)

USD

590

254

346

380

211

591

Snow Phipps

Fund II, Fund III,

Fund IV, co-investment

opportunities and

management company

EUR

403

273

135

71

143

214

participation

USD

478

324

154

80

170

250

Asian private equity

companies and portfolio

funds

Milestone China

Opportunities funds,

investment holdings and

management company

EUR

142

1

128

140

50

190

participation

USD

169

2

167

159

59

218

Prescient China funds

and investment

EUR

-

-

68

2

149

151

management company

USD

-

-

82

2

176

178

Grab Holdings Inc.

EUR

-

-

43

-

42

42

USD

-

-

50

-

50

50

Asia Partners fund

EUR

21

13

8

-

9

9

USD

25

15

10

-

11

11

Specialised investment

funds

Vanterra C Change TEM

EUR

60

4

53

2

18

20

and holding companies

USD

71

4

67

3

21

24

NanoDimension funds

and co-investment

opportunities

EUR

99

15

85

38

83

121

Euro investment

EUR

4

-

4

1

4

5

US dollar investment

USD

112

18

94

42

94

136

GAM Real Estate

EUR

117

33

87

87

3

90

Finance Fund

GBP

100

28

72

75

2

77

United States land

development and

EUR

181

5

160

43

33

76

mortgages

USD

215

6

209

48

39

87

Diamond interests(5)

EUR

-

-

116

95

15

110

ZAR

-

-

1 160

1 409

254

1 663

(1) Calculated using quarter end foreign exchange rates.

(2) Calculated using actual foreign exchange rates at transaction date.

(3) Total of realised proceeds and current fair value.

(4) The invested amount for Trilantic Capital Partners includes an initial payment of $ 10 million.

(5) The exposure to the South African rand has been partially hedged by a forward exchange contract and borrowings in this currency.

3

PERFORMANCE

NET ASSET VALUE

The NAV comprises total assets less total liabilities, and equates to total equity under International Financial Reporting Standards. The decrease in the NAV of € 229 million during the quarter reflects decreases in the estimated fair value of certain investments including Pension Insurance Corporation Group Limited and derivative assets, offset by increases in the value of British American Tobacco p.l.c. ('BAT'), other listed investments, Trilantic Capital Partners, Snow Phipps funds and co-investment opportunities and Prescient China funds.

Reinet records its assets and liabilities in euro; the weakening of sterling and the US dollar against the euro, offset by the strengthening of the South African rand against the euro has resulted in an overall decrease in the value of certain assets and liabilities in euro terms. Applying the current quarter end exchange rates to the March 2021 assets and liabilities would have resulted in a decrease in the March 2021 NAV of some € 41 million.

NET ASSET VALUE PER SHARE

The NAV per share of the Company is calculated by dividing the NAV by the number of shares outstanding (excluding treasury shares) of 184 290 891.

COVID-19

In March 2020, the World Health Organisation classified the COVID-19 outbreak as a pandemic.

Reinet recognises that the long-term financial impact of COVID-19 may still be unknown. However it continues to value

its investments in line with International Private Equity and Venture Capital Valuation ('IPEV') guidelines and its

approved valuation procedures and methodologies. All investment valuations have been prepared using latest available data and discussions have taken place with fund managers to determine any significant changes in value and any impacts related to COVID-19.

INVESTMENTS

Reinet seeks, through a range of investment structures, to build partnerships with other investors, specialised fund managers and entrepreneurs to find and develop opportunities for long-term value creation for its shareholders.

Since its formation in 2008, Reinet has invested some € 3.1 billion and at 30 June 2021 has committed to provide further funding of € 613 million to its current investments. New commitments during the quarter under review amounted to

  • 253 million, and a total of € 20 million was funded during the quarter.

Major items impacting the NAV, significant changes in carrying value and new investments during the quarter under review are described below.

LISTED INVESTMENTS

BRITISH AMERICAN TOBACCO P.L.C.

The investment in BAT remains one of Reinet's largest investments and is kept under constant review, considering the company's performance, the industry outlook, cash flows from dividends, stock market performance, volatility and liquidity.

Reinet holds 56.1 million BAT shares representing some 2.44 per cent of BAT's issued share capital as at

30 June 2021. The value of Reinet's investment in BAT amounted to € 1 831 million at 30 June 2021 (31 March 2021:

  • 1 826 million), being some 35.5 per cent of Reinet's NAV. The increase in value reflects the increase in the BAT share price on the London Stock Exchange from £ 27.74 at 31 March 2021 to £ 28.00 at 30 June 2021 offset by the weakening of sterling against the euro during the quarter.

Further information on BAT is available at www.bat.com/annualreport.

OTHER LISTED INVESTMENTS

Other listed investments comprised:

30 June 2021

31 March 2021

€ m

€ m

SPDR Gold shares

32

32

Selecta Biosciences, Inc.

5

5

Soho China Limited

21

12

Twist Bioscience Corporation

50

47

108

96

4

SOHO CHINA LIMITED

Soho China Limited ('Soho') is a Chinese office developer focused on developing and leasing properties in the central business districts of Beijing and Shanghai. Soho developments are known for their modern architecture, with designs from architects such as Zaha Hadid and Japanese architect Kengo Kuma. The company has developed over five million square metres of commercial properties in China.

In June 2021, the Blackstone Group announced its intention to make a general offer to acquire a controlling stake in Soho.

Reinet holds 47 million shares with a market value of € 21 million as at 30 June 2021 (31 March 2021: € 12 million). The increase in value reflects the increase in the share price following the announcement by the Blackstone Group, offset by the weakening of the US dollar against the euro during the quarter.

Further information on Soho is available at www.sohochina.com.

UNLISTED INVESTMENTS

Unlisted investments are carried at their estimated fair value. In determining fair value, Reinet Fund Manager S.A. (the 'Fund Manager') relies on audited and unaudited financial statements of investee companies, management reports and valuations provided by third-party experts. Valuation methodologies applied include the NAV of investment funds, discounted cash flow models and comparable valuation multiples, as appropriate.

PENSION INSURANCE CORPORATION GROUP LIMITED

Reinet's investment in Pension Corporation is carried at an estimated fair value of € 2 514 million at 30 June 2021 (31 March 2021: € 2 755 million). This value takes into account Pension Corporation's audited adjusted equity own funds value at 31 December 2020, valuation multiples over the corresponding period drawn from last disclosed industry data and a discount of 10 per cent which takes into account the illiquid nature of Reinet's investment.

The resultant decrease in Reinet's estimated fair value of Pension Corporation is mainly a result of a decrease in comparable company multiples derived from public information of listed peer-group companies in the UK insurance sector as at 30 June 2021 and the weakening of sterling against the euro in the quarter.

The valuation multiples used in determining the fair value include any current market impacts on the trading prices of listed peers related to the COVID-19 pandemic.

The investment in Pension Corporation represents some 48.8 per cent of Reinet's net asset value at 30 June 2021, compared to 51.2 per cent at 31 March 2021.

Further information on Pension Corporation is available at www.pensioncorporation.com.

PRIVATE EQUITY AND RELATED PARTNERSHIPS

TRILANTIC CAPITAL PARTNERS

Reinet's investment in Trilantic Management and related funds is carried at the estimated fair value of € 211 million at 30 June 2021 (31 March 2021: € 179 million) of which € 2 million (31 March 2021: € 2 million) is attributable to the minority partner. The estimated fair value is based on unaudited valuation data provided by Trilantic Management at 31 March 2021 adjusted for changes in the value of listed investments included in the portfolios and cash movements up to 30 June 2021. No adjustment has been made by Reinet in respect of the impact of COVID-19 on the valuation of underlying unlisted investments at 30 June 2021 following discussion with Trilantic Management, as Reinet does not expect this to be significant.

The increase in the estimated fair value is due to capital contributions of € 22 million and increases in estimated fair values of underlying investments, offset by the weakening of the US dollar against the euro.

Further information on Trilantic is available at www.trilantic.com.

SNOW PHIPPS FUNDS, CO-INVESTMENT OPPORTUNITIES AND MANAGEMENT COMPANY PARTICIPATION

In 2021, a new management company known as TruArc Partners, LP ('TruArc') was formed as a successor business to Snow Phipps Group, LLC ('Snow Phipps'), continuing the historical focus on middle-market controlled private equity investments. In addition to providing investment advice to TruArc Fund IV, TruArc will also serve as a sub-adviser to the existing Snow Phipps funds.

In the quarter ended June 2021, Reinet committed a total of € 253 million ($ 300 million) to TruArc Fund IV and a related co-investment vehicle. In addition, Reinet acquired a minority stake in TruArc.

Reinet has to date invested as a limited partner in Snow Phipps II, Snow Phipps III, TruArc Fund IV, TruArc and in five co-investment opportunities alongside Snow Phipps III.

Reinet's investment is carried at an estimated fair value of € 143 million at 30 June 2021 (31 March 2021: € 161 million), based on the unaudited valuation data provided by Snow Phipps at 31 March 2021. No adjustment has been made by Reinet in respect of the impact of COVID-19 on the valuation of underlying unlisted investments at 30 June 2021, as Reinet does not expect this to be significant.

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Reinet Investments SCA published this content on 26 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2021 05:37:01 UTC.


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