Fairtree invests $210 million in South Africa’s richest man Johann Rupert’s Remgro

Key Points

• Fairtree Asset Management acquired a 5.01% stake in Remgro for R3.9 billion ($210 million), reinforcing confidence in the investment firm’s long-term growth.
• Rupert, Africa’s second-richest man, retains significant influence over Remgro, controlling all unlisted B ordinary shares and 42.91% of total voting rights.
• Despite economic challenges, Fairtree’s investment underscores investor confidence in South Africa’s private sector and Remgro’s resilience across diverse industries.

Fairtree Asset Management, a subsidiary of Fairtree Group, has acquired a beneficial stake in Remgro Limited, the South African investment holding company chaired and controlled by billionaire Johann Rupert. This reinforces Fairtree’s commitment to investing in high-quality South African businesses while expanding its footprint in the country’s equity market.

Fairtree invests $210 million in Remgro shares

According to a regulatory filing on the Johannesburg Stock Exchange (JSE) on March 4, Fairtree Asset Management has secured a 5.01 percent stake in Remgro through a R3.9 billion ($210.12 million) investment. The move signals confidence in Remgro’s long-term growth prospects and strengthens Fairtree’s presence in South Africa’s investment landscape.

Fairtree, based in Cape Town, has built a reputation for managing assets across equity, fixed income, credit, commodities, and private equity. With a focus on delivering strong risk-adjusted returns, the firm investment aligns with its strategy of backing well-established companies with solid fundamentals. As required by regulations, Remgro has submitted the necessary filings to the Takeover Regulation Panel, with its board confirming the accuracy of the disclosure.

Johann Rupert’s grip on Remgro strengthens

Founded in the 1940s by Anton Rupert, Remgro has grown into a major investment powerhouse, holding interests in healthcare, consumer products, financial services, infrastructure, industry, and media.

Under Johann Rupert—Africa’s second-richest man and South Africa’s wealthiest individual—the company continues to be a key player in the country’s corporate sector. Rupert retains significant influence over Remgro, controlling all unlisted B ordinary shares and holding 42.91 percent of total voting rights.

Fairtree’s move signals investor confidence

Fairtree’s investment comes on the heels of Remgro’s latest financial results, which showed a 4.72 percent revenue increase for the 2024 fiscal year, rising from R48.15 billion ($2.81 billion) to R50.42 billion ($2.95 billion). However, headline earnings fell 19.97 percent to R5.65 billion ($330.16 million), impacted by impairments on key investments, including Heineken Beverages and Mediclinic.

Despite challenges such as power shortages, high interest rates, and logistical disruptions, Fairtree’s move reflects broader investor confidence in South Africa’s private sector and Remgro’s ability to navigate economic headwinds.