Rand Merchant Investment Holdings (RMI) has been given the green light from regulators to unbundle its 25% stake in Discovery and 26.8% share in Momentum Metropolitan.
Hiving off its 167-million shares in Discovery and 401-million in Momentum is expected to be concluded later this month, RMI said in a statement on the stock exchange news service (Sens) on Friday.
RMI’s plan was first announced in September 2021 and will see shareholders receive slightly less than 10.92 unbundled Discovery shares for every 100 shares they had in the holding company.
They would also get 26.18 unbundled Momentum Metropolitan shares for every 100 RMI shares they held.
The rationale behind RMI’s unbundling process is premised on addressing a lingering discount between the holding company’s own market value and that of its underlying constituents — an issue that often plagues investment holding companies.
RMI shareholders will have until April 19 to elect whether to participate in the unbundling process, and will not be able to choose to instead receive cash in lieu of payment for their shares in the holding company.
The group plans to release a Sens statement on April 21 providing further detail on the unbundling process, with final settlement expected to be completed by April 25.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.