Three options for cash-flush Reinet after sale to big buyer

Having previously written about Pension Insurance Corporation Group (Reinet's hidden giant), it should be no secret that I have liked the business for some time.

- Keith McLachlan

Similarly, I have appreciated Reinet - particularly the large discount that Reinet's share price offered to its net asset value (NAV).

However, both of these aspects appear to now be ending. In the past month, Reinet's share price has rallied about 20% on rumours there was a big buyer of PensionCorp. Reinet confirmed the rumours, then late last week said it had accepted the offer.

At a price (including dividends) of £5.9 billion, the Athora Holdings offer to buy the entirety of PensionCorp has been accepted, and due to Reinet's 49.5% stake in the group, around €3.4 billion (R70.78 billion) of this should flow to Reinet.