Brait SE plans to list Virgin Active in the UK in late 2026, with a secondary offer in Johannesburg. The move is part of Brait’s ongoing portfolio reduction strategy under CEO Peter Hayward-Butt. The South African holding firm, which is backed by billionaire Christo Wiese, aims to reduce debt after pandemic-related delays. Virgin Active represents 61% of Brait’s assets, while Premier Group and New Look remain on the portfolio.
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By Janice Kew
Brait SE plans to list its Virgin Active fitness chain in the second half of 2026, as the South African investment holding company backed by billionaire Christo Wiese continues to wind down its portfolio.
A listing is “most likely” to be in the UK, with a secondary offer in Johannesburg, Brait Chief Executive Officer Peter Hayward-Butt said in an interview Wednesday.
Brait first announced its plan to sell Virgin Active and other assets in late 2019 as part of an overhaul to reduce debt and pay out investors. It listed part of its stake in Premier Group Ltd. last year and still plans to sell UK apparel chain New Look.
The disposal of Virgin Active, which accounts for 61% of the investment company’s assets, was delayed because of the pandemic when the firm was forced to close many gyms for lengthy periods due to coronavirus lockdowns. Debt at the unit fell to £398 million ($507 million) during the six months through September, from £427 million.
Recapitalization
Brait also finalized a recapitalization plan in the period. Shares of the San Ä wann, Malta-based company climbed 5.5% at 4:14 p.m. in Johannesburg. That brings this year’s gain to 45%, heading for its first annual increase in three years.
“Broadly the market has been happy with the recapitalization, which is great because you’re never certain how it’s going pan out,” Hayward-Butt said. “I think people are starting to look at the value of the underlying assets now as opposed to can Brait survive, which was the case before the recapitalization.”
While Brait’s remaining stake of about 34% in Premier could be sold relatively quickly, it has it has no intention of selling it through “a big book build or something where you need to take a discount,” he said. Premier’s stock has climbed 83% in Johannesburg this year, making it the third best performer on the FTSE/JSE Africa All Share Index.
Brait sold some Premier stock in early October and it would consider doing that again if approached bilaterally, Hayward-Butt said.
“We are happy to provide some liquidity at market price,” he said.
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© 2024 Bloomberg L.P.
