South African billionaire Johann Rupert, the country’s wealthiest man, has officially ended his family’s decades-long involvement in the global tobacco industry by fully divesting from British American Tobacco.
Reinet Investments, one of Rupert’s key investment vehicles, announced on Tuesday, 14 January 2025, that it had sold over 43.3 million BAT shares at £28.20 per share through an accelerated bookbuild process.
According to Business Tech, this move generated gross proceeds of approximately £1.22 billion (~R28.3 billion).
The sale will be finalised on 16 January, marking the complete exit of Reinet and its subsidiaries from BAT holdings.
“Our family’s legacy in the tobacco industry is significant, but the time has come to align our investments with new opportunities and values,” Rupert said in a statement.
Legacy ends
The Rupert family’s connection to the tobacco industry dates back to the 1940s, when Johann’s father, Anton Rupert, founded Voorbrand Tobacco Company, which later became Rembrandt.
The company grew into a major player in South Africa’s tobacco market and laid the foundation for the family’s immense wealth.
“This marks the end of an era for the Rupert family, whose tobacco ventures once laid the foundation for our diversified investments today,”
Rupert remarked, reflecting on the historical significance of the decision.
In the 1990s, the family consolidated its tobacco interests under Rothmans International and later merged them with BAT.
By 2008, Rupert had spun off the tobacco assets into Reinet Investments, paving the way for the family’s shift towards other ventures, including luxury goods and financial services.
Future plans
Reinet, which previously held 24% of its net asset value in BAT shares, said the proceeds from the sale would be used to fund ongoing investment activities.
“This divestment is part of our ongoing strategy to reposition and diversify our portfolio,” a Reinet spokesperson stated.
Economic analysts have lauded the move as a strategic pivot.
“Rupert’s exit from BAT reflects a broader global trend of diversifying away from industries facing increasing regulatory scrutiny and ethical concerns,” noted Johannesburg-based economist Mpho Nkosi.
Iconic businessman
Rupert, whose wealth is estimated at R213 billion, remains at the forefront of South African business.
His main investments include Richemont, the luxury goods giant with a market cap of R1.57 trillion, as well as Remgro and Reinet.
Rupert, in a brief stint in 2024, displaced the President of the Dangote Group, Aliko Dangote, to become the richest man in Africa.
As Reinet prepares to release its quarterly management statement later this month, Rupert’s decision marks a turning point in South Africa’s corporate history, signalling the end of a chapter deeply entwined with the country’s economic landscape, the release concluded.