South African billionaire Johann Rupert, the nation’s wealthiest man, has officially severed his family’s long-standing ties with the global tobacco industry. Rupert’s investment vehicle, Reinet Investments, announced the sale of over 43.3 million British American Tobacco (BAT) shares at £28.20 per share through an accelerated bookbuild process.
The divestment, valued at approximately £1.22 billion (R28.3 billion), is expected to be completed on January 16, 2025. This sale marks the Rupert family’s complete exit from BAT, ending an era that began in the 1940s with the founding of Voorbrand Tobacco Company by Johann’s father, Anton Rupert.
Reflecting on the decision, Rupert stated, “Our family’s legacy in the tobacco industry is significant, but the time has come to align our investments with new opportunities and values.”
Historical Ties and Evolution
Anton Rupert’s Voorbrand Tobacco Company evolved into Rembrandt, a major player in South Africa’s tobacco market, forming the cornerstone of the family’s wealth. In the 1990s, the family consolidated its tobacco holdings under Rothmans International, later merging with BAT.
By 2008, Johann Rupert transferred the tobacco assets to Reinet Investments, steering the family toward diversified investments in luxury goods and financial services.
Strategic Shift
Reinet, which previously allocated 24% of its net asset value to BAT shares, plans to use proceeds from the sale to fund new investment activities. A spokesperson for the firm described the move as part of an ongoing strategy to diversify its portfolio.
Johannesburg-based economist Mpho Nkosi lauded the decision, noting it reflects a global trend of moving away from industries facing ethical challenges and regulatory pressures.
Rupert’s Business Empire
With an estimated fortune of R213 billion, Johann Rupert remains a dominant figure in South African business, holding significant stakes in luxury goods conglomerate Richemont, as well as Remgro and Reinet.
In 2024, Rupert briefly surpassed Nigerian industrialist Aliko Dangote to become Africa’s richest man.
As Reinet prepares to release its quarterly management statement, the exit from BAT marks a pivotal moment in South Africa’s corporate history, signaling the end of a chapter deeply interwoven with the country’s economic development.
