South Africa: BAT JSE Listing Delayed As Shareholders Realign Portfolios

Source from:  Business Day 05/24/2010

The listing by British American Tobacco reported to be worth around R560bn rand, has been delayed again as Finance Minister Pravin Gordhan extends 24 months period of SA institutional investors to realign portfolios. Remgro wants a secondary listing of British American Tobacco shares on the Johannesburg stock exchange which could have a value of around R560 billion. In 2008 the Finance Ministry granted institutional investors a 24 month period to re-allign their investments. The Restructuring has resulted in the receipt of Shares by South African institutional investors as part of the utilisation of their general foreign portfolio investment allowance. But receipt of the Shares could result in institutional investors exceeding their investment allowances of inward listed shares and the SA Reserve Bank granted a dispensation of a period of 24 months from October 2008 to South African institutional investors in order that they may realign their portfolios in respect of the amount of inward listed shares that they could hold. But yesterday, Remgro received notification from the SARB that the South African Minister of Finance has decided to extend the previously approved 24 months period fby another 24 months until 31 October 2012. The Company was also notified by the SARB that the decision to extend the period of 24 months was taken in the context of the South African National Treasury's review of the current policy on inward listings and the finalisation of the prudential regulatory framework for foreign exposure by institutional investors in South Africa. The National Treasury is planning to launch a revised policy in South Africa concerning capital flows and BAT says should this change within the 24 month period, then it would affect the process. Enditem