South African Billionaire Johann Rupert Cuts Ties with Tobacco Industry

Johann Rupert, South Africa's wealthiest man, has officially severed his family’s long-standing connection to the tobacco industry by fully divesting from British American Tobacco (BAT).

On January 14, 2025, Reinet Investments, one of Rupert’s key investment vehicles, announced the sale of over 43.3 million BAT shares at £28.20 each through an accelerated book build process. This sale generated gross proceeds of approximately £1.22 billion (around R28.3 billion). The transaction will conclude on January 16, 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 stated.

Closing a Historic Chapter

The Rupert family’s ties to the tobacco industry began in the 1940s when Johann’s father, Anton Rupert, established Voorbrand Tobacco Company, later renamed Rembrandt. This venture became a dominant player in South Africa’s tobacco market, forming the foundation of the family’s fortune.

Reflecting on this decision, Rupert remarked, “This marks the end of an era for the Rupert family, whose tobacco ventures once laid the foundation for our diversified investments today.”

In the 1990s, the family consolidated its tobacco interests under Rothmans International, which later merged with BAT. By 2008, Rupert restructured the family’s holdings, spinning off tobacco assets into Reinet Investments and shifting focus to other ventures, including luxury goods and financial services.

MORE NEWS

Clark Calls for Suspension and Overhaul of Nigerian Governors’ Forum 

Lebanon Appoints International Judge Nawaf Salam as Prime Minister 

Reps Question NPC Chairman Over N4trn Revenue and Census Readiness 

A Strategic Shift

Reinet, which had previously allocated 24% of its net asset value to BAT shares, plans to use the proceeds from this divestment to support ongoing investment initiatives.

“This sale is part of our broader strategy to reposition and diversify our portfolio,” a spokesperson for Reinet noted.

Economic analysts have commended the move as a forward-thinking decision. Johannesburg-based economist Mpho Nkosi commented, “Rupert’s exit from BAT aligns with a global trend of moving away from industries facing increasing regulatory and ethical challenges.”

Rupert’s Legacy and Future

With an estimated wealth of R213 billion, Johann Rupert remains a prominent figure in South African business. His investments include Richemont, a luxury goods giant valued at R1.57 trillion, as well as Remgro and Reinet.

In 2024, Rupert briefly surpassed Aliko Dangote, president of the Dangote Group, to become Africa’s richest man.

As Reinet prepares to release its quarterly management statement, this decision signals a transformative moment in South Africa’s corporate history, concluding a chapter that has profoundly shaped the nation’s economic landscape.

FAQs

• Why did Johann Rupert decide to divest from British American Tobacco?

Rupert stated that the decision was driven by a desire to align the family’s investments with new opportunities and values, reflecting a strategic pivot away from the tobacco industry.

• What will the proceeds from the BAT shares sale be used for?

The proceeds, approximately £1.22 billion, will be reinvested into Reinet’s ongoing investment activities as part of its diversification strategy.

• What is the historical significance of the Rupert family’s ties to tobacco?

The Rupert family’s involvement in the tobacco industry began in the 1940s and significantly contributed to their wealth, laying the foundation for their later investments in luxury goods and financial services.

• What are Johann Rupert’s main investments today?

Rupert’s key investments include Richemont, Remgro, and Reinet, focusing on luxury goods, financial services, and diversified holdings.

• How has this decision impacted Rupert’s legacy?

The move marks the end of the Rupert family’s tobacco era, symbolizing a strategic shift toward industries with sustainable and ethical growth opportunities.