At a Glance
- Remgro to distribute 238 million EMH shares worth R1.3 billion to shareholders directly.
- The unbundling aims to unlock value and reduce Remgro’s discount to net asset value.
- Transaction boosts EMH share liquidity and simplifies Remgro’s investment portfolio structure.
Remgro Limited, the Johannesburg-listed investment holding company chaired and controlled by billionaire Johann Rupert, has unveiled plans to unbundle its significant stake in eMedia Investments (EMI), the company behind renowned television and radio assets.
The transaction, structured as a share swap and distribution with eMedia Holdings (EMH), aims to simplify Remgro’s investment portfolio and allow EMH to assume full control of EMI.
By distributing newly issued EMH shares directly to its shareholders, Remgro expects to unlock value, narrow the discount between its share price and the underlying net asset value, and enhance liquidity in EMH’s stock.
The move reflects Remgro’s strategy of reshaping its holdings to deliver long-term shareholder returns while enabling investors to manage their exposure to the media business independently.
Remgro set to distribute R1.3 billion ($73 million) in EMH shares
According to a voluntary disclosure filed on the Johannesburg Stock Exchange (JSE) on June 27, Remgro’s wholly owned subsidiary, Venfin, will subscribe for 18.3 million EMH shares at R3.25 ($0.182) each, valued at approximately R59.5 million ($3.34 million).
In addition, Venfin will exchange its 32.31 percent stake in EMI—the group’s primary operating business—for a further 220 million EMH shares. Altogether, nearly 238.5 million EMH shares, worth an estimated R1.3 billion ($73 million), will be distributed to Remgro shareholders through an unbundling process, giving them direct ownership of EMH shares.
Unlocking shareholder value through simplification
The transaction, which is expected to significantly increase the number of EMH shares available for trading and improve market liquidity, remains subject to various regulatory approvals.
These include consent from the South African Reserve Bank, competition authorities, and EMH shareholders. If Remgro fails to complete the unbundling within the agreed timeframe, EMH retains the option to repurchase a portion of the shares at the original subscription price.
Remgro stated that the unbundling aims to reduce the discount between its share price and the underlying net asset value, enabling investors to realize more direct exposure to EMH. The company believes the move will enhance liquidity in EMH shares, which have long suffered from low free float and limited trading activity.
Johann Rupert’s influence remains significant
Founded in the 1940s by Anton Rupert, Remgro has evolved into one of South Africa’s most influential investment groups, holding interests spanning healthcare, consumer products, financial services, infrastructure, and media.
Under Johann Rupert’s leadership, the company continues to reshape its portfolio for long-term shareholder returns while maintaining a powerful role in South Africa’s corporate landscape.
A milestone reshaping for Remgro shareholders
Remgro’s deal with eMedia holdings to restructure and hand over $73 million worth of shares comes on the heels of Remgro’s 2025 half-year results, which showed a 3.86 percent revenue increase for the 2025 half-year, rising from R25.41 billion ($1.43 billion) to R26.4 billion ($1.48 billion).
Also, headline earnings rose 38.7 percent to R3.73 billion ($217 million), driven by stronger contributions from Rainbow, RCL Foods, OUTsurance, Mediclinic, and Heineken Beverages, partly offset by weaker results at TotalEnergies and CIVH. eMedia’s earnings rose 4.3 percent to R48 million ($2.8 million), supported by stronger TV ad revenue and record prime-time market share despite higher legal costs.
Pending regulatory approvals, Remgro investors are set to receive approximately 42 EMH shares for every 100 Remgro shares they hold, representing a value of about R120.86 ($6.794) based on the current share price. This distribution highlights Remgro’s commitment to simplifying its portfolio, enhancing transparency, and giving shareholders greater flexibility to manage their investments independently.
