Table of Contents
Key Points
- Brait SE plans to list Virgin Active in the UK by late 2026, with a secondary offering in Johannesburg, as part of its strategy to reduce debt and streamline its portfolio.
- The company has successfully reduced Virgin Active's debt and completed a recapitalization plan, leading to a positive market response and a 45% increase in share value this year.
- Brait is considering the sale of its remaining 34% stake in Premier, which has performed strongly on the Johannesburg Stock Exchange, but intends to do so without discounts.
Brait SE, the South African investment holding company partly owned by billionaire Christo Wiese, has announced its intention to list its Virgin Active fitness chain on the UK stock market by late 2026. A secondary listing in Johannesburg is also planned, as part of Brait’s strategy to streamline its portfolio and reduce debt under CEO Peter Hayward-Butt.
Virgin Active, which constitutes sixty-one percent of Brait’s assets, has been a key focus of the company. The pandemic disrupted earlier plans for asset disposals and necessitated the closure of numerous gyms, delaying a potential listing. Despite these challenges, Virgin Active has reduced its debt to £398 million ($420 million) as of September 2023, down from £427 million ($450 million).
Hayward-Butt explained, “A UK listing is most likely, supported by a secondary offering in Johannesburg,” signaling the company's commitment to extracting value from its flagship fitness chain.
Recapitalization bolsters investor confidence
During the same period, Brait successfully implemented a recapitalization plan, earning a strong market response. Shares in the Malta-based company rose by 5.5 percent in Johannesburg, contributing to a forty-five percent increase year-to-date—the first annual gain in three years.
The positive investor sentiment reflects a shift in focus towards the inherent value of Brait’s assets, moving away from prior concerns over its financial stability.
Broader portfolio strategy and asset disposals
Brait’s strategic asset divestitures began in 2019, aiming to reduce debt and return capital to investors. The company listed a portion of its stake in Premier Group Ltd. last year and continues to explore options for selling UK apparel retailer New Look.
Premier, Brait’s food business, has been another standout performer. Its valuation reached R9.27 billion ($509 million), and its stock has surged eighty-three percent in Johannesburg this year, making it one of the top performers on the FTSE/JSE Africa All Share Index. While Brait remains open to selling its remaining thirty-four percent stake in Premier, it has no plans for discounted large-scale sales, instead favoring bilateral liquidity at market prices.
Positioning for long-term growth
The planned Virgin Active listing reflects Brait’s broader strategy to optimize its portfolio, reduce leverage, and enhance shareholder value. By focusing on high-performing assets and adapting to market conditions, Brait demonstrates resilience and a forward-looking approach in navigating the post-pandemic economic landscape.
