Rand Merchant Investment Holdings plans to list OUTsurance, the company confirmed.
The investment holding company also expects to change its name to something along the lines of OUTsurance over the next six to 12 months.
He said even though the company would have focused only on short-term insurance if it chose to diversify its portfolio again, it decided to not invest further in new businesses. It made more sense to grow OUTsurance bigger instead. Investment holding companies have fallen out of favour with investors worldwide. Many in South Africa trade at massive discounts to their net asset value on the JSE, which was part of the reason PSG Group decided to delist from the JSE.Bosman said RMI has been thinking about moving away from being an investment holding company for the last six years. He said this was the reason RMB Holdings decided to unbundle FirstRand in 2020.
"Investment holding companies trade at a discount, and there's no prospect of that changing. It is [also] quite an inefficient structure. When we had mixed assets, we were trading at a 30% discount. Our share price was R30," said Bosman.He said the unbundling of the life insurers and using the proceeds from the Hastings sale to repay debt has unlocked R35 billion of value for shareholders now that RMI's share price is trading closer to R50.
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