Today Remgro (REM) is unbundling their 26million shares in Implats (4.4% of the total equity of IMP). LDT was Friday 15 June and holders of REM will receive 5.16582 IMP shares for every 100 REM REM shares held.
The question is why? The official SENS from REM states " It was decided to distribute the investment in Implats as the directors were of the opinion that shareholders should be given the choice of direct ownership". Hmmm. They further add that IMP is a non core holding.
Sure, but isn't the whole point of REM as an investment holding company, in other words not direct ownership of the assets?
Frankly IMP has turned south and is unlikely to reverse any time soon as the issues plaguing the platinum industry continue and rather than grin and bear or sell the holding themselves REM is passing the buck.
Small share holders will be especially prejudiced as a R10,000 REM holding will net a whole 4 IMP shares and selling those is going to hurt cost wise and holding onto them hardly seems worthwhile.
Why couldn't REM sell them on the open market over a couple of weeks or months or even better as a block to a third party (which would admittedly have been a tough ask).
It smacks of REM being on a corner and simple passing the buck.