South African billionaire Johann Rupert to collect $22.8 million in Remgro dividends

South African billionaire Johann Rupert's family holding company is set to receive about 379.6 million rand ($22.8 million) from Remgro Ltd. on Oct. 26, when the investment group he chairs pays a final dividend and a special dividend that South Africa's central bank has now approved.

Remgro declared a final gross dividend of 422 South African cents a share and a special dividend of 550 cents with its results for the year through June. The South African Reserve Bank signed off on the special payout, Remgro said in a filing on Sept. 30, leaving the dates unchanged. The shares trade without the right to the dividends from Oct. 21, and shareholders on the register on Oct. 23 will be paid three days later.

Both dividends apply to Remgro's listed ordinary shares and to its unlisted B ordinary shares, which are owned by Rupert Beleggings, the private company through which the Rupert family controls the group. Rupert is a director of Rupert Beleggings.

How the payout adds up

Remgro has 39,056,987 B shares in issue, according to its results announcement. Each will earn 9.72 rand before tax from the two dividends combined.

The final dividend of 4.22 rand a share comes to 164.8 million rand ($9.9 million) on the B shares. The special dividend of 5.50 rand adds 214.8 million rand ($12.9 million). Together, 39,056,987 shares multiplied by 9.72 rand gives 379.6 million rand.

Rupert is also listed with an associate interest in about 7.55 million Remgro ordinary shares, mostly held by an entity he directs, according to disclosures cited by BusinessTech. Those shares would draw a further 73.4 million rand ($4.4 million), taking the amount linked to Rupert to about 453.1 million rand ($27.2 million). He holds no Remgro shares directly in his own name.

The 20% South African dividend withholding tax applies to individual shareholders, which would cut the net payout to 3.376 rand a share on the final dividend and 4.40 rand on the special. Dividends paid to South African companies are generally exempt.

Including the 173-cent interim dividend paid earlier in the year, Remgro's ordinary payout for the year rose 73% to 595 cents a share, and the B shares earn 11.45 rand each once the special dividend is counted, or about 447.2 million rand ($26.8 million).

Control with a small economic stake

The B shares give the Ruperts control of Remgro with a modest share of its capital. They make up about 7% of the company's equity, but each B share carries 10 votes, giving Rupert Beleggings about 43% of the votes. Across all shareholders, the final and special dividends will cost Remgro about 5.4 billion rand ($325 million).

Remgro, which holds stakes in businesses including hospital operator Mediclinic, fiber networks group Maziv, food producer RCL Foods and fuel retailer TotalEnergies South Africa, can afford the payout after a strong year. Headline earnings rose 42% to 11.1 billion rand ($669 million), helped by deals at Mediclinic and at CIVH, its fiber holding company, where Vodacom Group bought into Maziv. Cash at the center of the group stood at 20.4 billion rand ($1.2 billion) at the end of June.

Reinet keeps buying back shares

Reinet Investments SCA, Rupert's Luxembourg-based investment holding company, which also trades in Johannesburg, is meanwhile shrinking its share count. Reinet bought back 591,276 of its shares on the Johannesburg Stock Exchange between Oct. 5 and Oct. 9 at an average of 433.47 rand each, spending about 256.3 million rand ($15.4 million), it said on Tuesday. That takes its program to 4.42 million shares for about 1.92 billion rand ($115.5 million) since it was announced in August.

Rupert is Reinet's executive chairman and owns about 26% of the company, according to Forbes. Buybacks reduce the number of shares held by outside investors, which over time increases the proportion of Reinet owned by holders who do not sell, including Rupert.

Rupert, 76, also chairs Swiss luxury group Compagnie Financière Richemont SA, the owner of Cartier. Forbes estimated his net worth at $17.4 billion in August.