Johann Rupert Ends Rupert Family’s Legacy in the Tobacco Industry

South African billionaire Johann Rupert, the country’s wealthiest individual, has officially brought his family’s longstanding connection to the global tobacco industry to an end by fully divesting from British American Tobacco (BAT).

Reinet Investments, one of Rupert’s primary investment entities, announced on Tuesday, January 14, 2025, that it had sold over 43.3 million BAT shares at approximately $34.68 per share through an accelerated bookbuild process. The sale, which generated gross proceeds of around $1.5 billion, is set to be finalized on January 16, marking the complete exit of Reinet and its subsidiaries from BAT holdings.

Reflecting on the significance of the decision, Rupert highlighted the historical importance of his family’s legacy in the tobacco industry but acknowledged that it was time to align their investments with new opportunities and values. The Rupert family’s involvement in tobacco dates back to the 1940s, when Johann’s father, Anton Rupert, founded Voorbrand Tobacco Company, which later became Rembrandt. This company became a dominant force in South Africa’s tobacco market and laid the foundation for the family’s substantial wealth.

The family’s tobacco interests were consolidated under Rothmans International in the 1990s and later merged with BAT. By 2008, Rupert restructured the family’s holdings, spinning off its tobacco assets into Reinet Investments, facilitating a pivot towards other industries, including luxury goods and financial services.

Reinet, which previously held 24% of its net asset value in BAT shares, stated that the proceeds from the divestment would be used to support ongoing investment activities. A spokesperson for Reinet noted that the sale was part of the company’s broader strategy to reposition and diversify its portfolio.

Economist Mpho Nkosi, based in Johannesburg, observed that Rupert’s decision to exit BAT aligns with a global trend of investors shifting away from industries facing increasing regulatory scrutiny and ethical challenges.

Rupert remains a dominant figure in South African business, with key investments in Richemont, the luxury goods conglomerate, as well as in Remgro and Reinet. In 2024, Rupert briefly surpassed Aliko Dangote, the President of the Dangote Group, to become Africa’s richest individual.

As Reinet prepares to release its quarterly management statement later this month, Rupert’s move marks a pivotal moment in South Africa’s corporate history. The decision signifies the conclusion of a chapter that played a significant role in shaping the country’s economic landscape while underscoring a shift towards more diversified and future-oriented investments.

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