Brait, a leading shareholder in retailers Iceland and New Look, aims to realise its investments within five years.
Brait revealed its plans alongside a financial restructuring as it seeks to put itself on a firm financial footing in the wake of difficulties that afflicted it.
Brait, which is also an investor in Virgin Active, had formerly acted as a “long-term investment holding company”.
It will now “adopt a new strategy that will focus on maximising value through the realisation of its existing assets in the portfolio over the next five years and returning capital to shareholders”.
The switch of emphasis accompanies a recapitalisation plan including an equity raise, a refinancing of revolving credit and the launch of a new convertible bond to raise between R14.4bn and R14.7bn altogether, “providing a holistic solution for Brait”.
South African entrepreneur Christo Wiese, whose business empire contributed to Brait’s problems, is among those investing in a rights issue.
Brait chairman Jabu Moleketi said: “The deal represents a positive step forward and a holistic solution for Brait following extensive discussions to materially reduce the debt on its balance sheet.
“We have a portfolio of distinctive, financially strong and cash generative investments and have today outlined a way forward that involves a strategic change of direction.”
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