Remgro: CIVH Deal Looks In Trouble

2025-06-03 00:35:27 ET

Summary

• Remgro remains attractive, trading at an approximate 27%+ discount to NAV, despite regulatory headwinds facing the CIVH-Vodacom merger.
• Mediclinic and consumer businesses are performing well, driving solid operating income and revenue growth across the portfolio. The insurance businesses are also doing well.
• There would be some upside on a more favourable NAV by 5% if the Vodacom-Maziv deal went through, but it looks like it might stay trust-busted.
• A good idea to keep on the watchlist.

Remgro Limited ( RMGOF ) is still in a bit of trouble with the CIVH deal, as the Vodacom-Vumatel merger implied by the cash injection of Vodacom into the InfraCo owned by CIVH is being resisted by the antitrust authorities in ZA. Therefore, a more favorable valuation for CIVH implied by that deal is not wise at this time....

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