South African billionaire Christo Wiese’s Brait completes $82.3-million rights issue

Timilehin Adejumobi -

Key Points:

  • Brait SE raises $82.3 million in an oversubscribed rights offer, demonstrating strong market confidence.
  • Shareholders applied for an additional 1.68 billion shares, with 100.39 million excess shares allocated pro-rata.
  • Brait plans to divest its portfolio within 18 months to three years, following a R171-million ($9.4 million) loss at the end of its 2024 fiscal year.

Brait SE, a South African investment holding company with billionaire businessman Christo Wiese among its major stakeholders, has successfully raised R1.5 billion ($82.3 million) through a rights offer. This move marks a significant show of investor confidence, strengthening Brait’s financial standing as it navigates a challenging market environment.

The rights offer, which was oversubscribed, involved the issuance of 2.54 billion new shares, with a remarkable 96.1-percent uptake before accounting for oversubscriptions. This strong response underscores the market’s confidence in Brait’s strategic direction.

Market confidence solidifies Brait’s financial position

Shareholders further demonstrated their support by applying for an additional 1.68 billion shares, leading to the allocation of 100.39 million excess shares on a pro-rata basis. Notably, the full subscription of the offer meant the underwriter was not required to fulfill any shares, reflecting robust market confidence in Brait’s long-term prospects.

Following the rights issue, Brait’s total issued share capital has surged from 1.32 billion to 3.86 billion shares. The newly issued shares were credited to shareholder accounts in dematerialized form on Aug. 12, with the distribution of excess shares and refunds for unsuccessful applications scheduled for the following day, Aug. 13, 2024.

Christo Wiese-backed firm plans strategic portfolio divestment

Founded in 1976, Brait has built a diversified portfolio of unlisted consumer businesses, including Premier Group, Virgin Active, and Consol. The successful rights offer comes as Brait seeks to recapitalize and stabilize its financial position amid evolving market conditions.

With Christo Wiese holding a 28.5-percent stake, Brait’s leadership remains committed to delivering value to shareholders. The recapitalization is part of a broader strategy aimed at sustainable growth, despite the company reporting a loss of R171 million ($9.4 million) at the end of its 2024 fiscal year.

Its recent financial maneuver also aligns with plans to divest part of its portfolio within the next 18 months to three years, positioning itself to capitalize on emerging opportunities as the global economy recovers. The successful rights offer underscores the company’s proactive approach to managing its capital structure while remaining agile in a dynamic investment landscape.