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Key Points
- Brait SE has successfully repurchased bonds totaling $5.3 million, reducing its outstanding principal debt by 4%.
- The move follows a December 2024 tender offer and market placement of Premier shares that raised $23.5 million.
- The transaction reflects Brait’s ongoing strategy to improve capital efficiency and strengthen its financial position.
Brait SE, the South African investment holding company with billionaire businessman Christo Wiese as one of its major stakeholders, has successfully concluded its bond buyback initiative, repurchasing bonds worth $5.3 million.
This is part of the company’s broader strategy to strengthen its financial structure and improve its balance sheet.
Brait’s strategic debt reduction
In December 2024, Brait launched a bond buyback offering to holders of its 6 percent senior unsecured bonds, due December 3, 2027.
The buyback, capped at a principal amount of R400 million ($21.2 million), resulted in the repurchase of R99 million ($5.25 million) of bonds, roughly 4 percent of the total outstanding principal.
The settlement is scheduled for January 17, 2025, reducing the total remaining principal of Brait’s bonds to R2.12 billion ($112.33 million).
Institutional support strengthens execution
The bond buyback was preceded by a successful placement of 4 million Premier Group shares, raising R444 million ($23.53 million) in December 2024. This injection of capital helped Brait execute its debt reduction plan while maintaining sufficient liquidity.
The initiative received strong support from bondholders, who received a purchase price of R750.58 ($39.785) per bond plus accrued interest. The repurchased bonds will be canceled, further reducing Brait’s debt and improving its financial position.
Also in 2024, Brait raised R1.5 billion ($82.3 million) through an oversubscribed rights offering, issuing 2.54 billion shares with a 96.1 percent uptake. Shareholders applied for 1.68 billion additional shares, with 100.39 million excess shares allocated without the need for underwriters. This boosted Brait’s share capital to 3.86 billion, strengthening investor confidence.
Brait posts 129 percent profit increase
Brait, established in 1976, has remained committed to enhancing shareholder value through well-executed strategic initiatives. The company’s diverse portfolio includes investments in Premier Group, Virgin Active, and Consol.
With Christo Wiese holding a substantial 28.5 percent stake, Brait's leadership is focused on optimizing shareholder returns. This approach has driven strong operational performance, demonstrated by the first-half 2025 financial results, which showed a remarkable 129.05 percent year-on-year increase in net profit to R1.02 billion ($53.94 million).
The company’s recent bond buyback underscores its dedication to reducing leverage and maintaining financial discipline. With a stronger financial foundation, Brait is better equipped to handle market challenges and pursue steady growth in its key investment sectors.
