HOW IT WORKS – Unbundling

by | Jun 8, 2020


What is unbundling?

  • A transaction process where shares
  • of one company (unbundled company)
  • are distributed by another company (unbundling company)
  • to the unbundling company’s shareholders

NOTE: This process will help separate the income from each branch and allow the business to focus on the core.


What can a company sell during the unbundling?

  • Assets
  • Product lines
  • Divisions
  • Subsidiaries

Reasons why a company would unbundle?

  • To create a better performing company or companies
  • To offer a new variety of products or services
  • To raise capital
  • Distribute cash to its shareholders
  • Cut down on costs
  • Sell off non-essential parts of the company to optimise their main operations
  • The BOD or company managers believe it will improve its current performance
  • Expand options for their consumers
  • To reach new consumers


Remgro, the listed investment holding company – chaired by Johann Rupert – Is going ahead with the unbundling agreement.

Remgro will unbundle its (28.2% ownership) and shares in Rand Merchant Bank Holdings (RMH) to its shareholders.

They will however, will hold on to its stake in FirstRand. Their biggest investment is 34% in FirstRand. It also owns 3.9% direct interest in the banking group, which it will keep.

Once this happens, then the shareholders will hold a direct portion in the RMH company.

With the transaction, each Remgro shareholder will receive 0.699 RMB shares for every 1 Remgro share they own.

So far, the effective date of the adjustment took place on Tuesday, 3 June 2020.

Trade well and look after yourself,



Timon Rossolimos

Founder, MATI Trader

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