RMI shares up 14% on news of Discovery, Momentum unbundling
Rand Merchant Investment Holdings (RMI) will unbundle its shareholding in Discovery and Momentum Metropolitan.
It is seeking to focus more intently on its short-term insurance business and to shrink the discount at which its shares trade.
The company also intends to issue shares worth R6.5 billion.
The RMI share price skyrocketed by more than 14% on Monday.
Arabile Gumede (in for The Money Show’s Bruce Whitfield) interviewed RMI CEO Herman Bosman (scroll up to listen).
We’ve had a fantastic partnership with these two companies… In 1992… We put in R10 million [into Discovery] – a return of 8500 times the market cap today…Herman Bosman, CEO - Rand Merchant Investment Holdings
The market is calling for a sharper focus… We want unlisted, non-competing stocks…Herman Bosman, CEO - Rand Merchant Investment Holdings
Outsurance, of which we own 90%... is amazingly cash-generative… We see great growth potential… We want a network of noncompeting short-term insurers…Herman Bosman, CEO - Rand Merchant Investment Holdings
We want to reduce our debt to R6 billion…Herman Bosman, CEO - Rand Merchant Investment Holdings
Source : https://www.123rf.com/photo_98751652_jse-limited-previously-the-jse-securities-exchange-and-the-johannesburg-stock-exchange-is-the-larges.html