COMPANY ANNOUNCEMENT FOR IMMEDIATE RELEASE
29 February 2012
REINET FUND S.C.A., F.I.S. RAISES £ 300 MILLION FINANCING
On 24 January 2012, Reinet Investments S.C.A. proposed a revision to the terms of its prospectus in respect of its diversification policy. The revision is to be approved by an extraordinary meeting of shareholders on 5 March 2012. Further to that announcement Reinet Investments S.C.A. is now pleased to inform shareholders that Reinet Fund S.C.A., F.I.S. has, through a wholly-owned subsidiary, entered into a £ 300 million medium-term financing facility with Deutsche Bank AG, London Branch.
The transaction incorporates put and call options (the "Options") over approximately 13.7 million British American Tobacco shares (the "BAT Shares"). The Options both guarantee a minimum value on the BAT Shares and allow Reinet to retain any increase in value up to a level significantly above the current share price. Reinet estimates the annual cost of the facility to be broadly in line with its expected dividend income on the relevant number of BAT Shares.
Mr Johann Rupert, Chairman of Reinet Investments Manager S.A., said:
“We believe that British American Tobacco represents an excellent investment in these turbulent times.
The transaction has been structured in such a way that Reinet may fund its on-going investment programme at competitive borrowing rates without having to divest any of its BAT shareholding at this time. We will retain a sizeable portion of the upside over the shares which are subject to the Options.”
Reinet Fund holds 84.3 million shares in British American Tobacco plc with a market value of £ 2 663 million (based on a closing price of £ 31.59 per share on the London Stock Exchange on 27 February 2012.).
Reinet Investments S.C.A. 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., a specialised investment fund also incorporated in Luxembourg. Reinet Investments shares are listed on the Luxembourg Stock Exchange, Reinet Investments’ primary listing, and Reinet Investments South African Depository Receipts issued by Reinet Securities S.A., are listed in Johannesburg, Reinet Investments’ secondary listing. Reinet Investments shares are included in the ‘LuxX’ index of the principal shares traded on the Luxembourg exchange and the Reinet Investments South African Depositary Receipts issued by Reinet Securities S.A., are included in the JSE ‘Top 40’ Share Index.
Reinet Investments S.C.A.
Registered office: 35, Boulevard Prince Henri, L-1724 Luxembourg