Reinet Shares Plunge With Analyst Questioning PICG Sale Price

Reinet Investments SAC plunged on Friday after the Luxembourg-based company agreed to sell its stake in Pension Insurance Corp. Group Ltd. at a price that at least one analyst said undervalues the UK insurer.

Athora Holding Ltd. is acquiring PICG for about £5.7 billion ($7.8 billion), according to a filing by Reinet, which owns an indirect 49.5% stake in the insurer. The price is less than PICG’s valuation in Reinet’s balance sheet, according to SBG Securities analyst Charles Russell.

The Johannesburg-listed shares in Reinet, which is controlled by South African billionaire Johann Rupert, dropped as much as 9.4%, ...