Brait SE is in talks with its biggest shareholder, South African businessman Christo Wiese, about a broad debt-reduction plan at the investment company that could involve fundraising, cost cuts and asset sales.<\/p>\n
Wiese\u2019s investment vehicle Titan intends to remain \u201ca significant and strategic shareholder,\u201d Brait said in a statement on Monday.<\/p>\n
Titan has been approached by third parties who support the initiative, the company said. Brait\u2019s shares rose less than 1% in Johannesburg trading.<\/p>\n
The disclosure follows reports last week that Wiese\u2019s Titan would team up a new vehicle called Arbiter and Johannesburg-based money manager Mergence Investment Managers to remove the current management and embark on their preferred strategy, including selling Brait\u2019s assets except for the gym-chain Virgin Active.<\/p>\n
Brait would also raise R3 billion ($162 million) in a share sale, according to an investor presentation seen by Bloomberg News.<\/p>\n
The reports kindled a surge in Brait\u2019s shares, which gained 11% over two days, valuing the group at R8.1 billion. The stock is still down about 46% this year.<\/p>\n
Brait has struggled with the challenge of owning embattled U.K. clothes retailer New Look, which it bought for 780 million pounds ($971 million) and now values at zero.<\/p>\n
Brait\u2019s other assets include British grocer Iceland and South Africa\u2019s Premier Foods, which makes Blue Ribbon bread and Snowflake flour.<\/p>\n
Wiese was one of South Africa\u2019s richest men before the near-collapse of Steinhoff International Holdings NV, in which he was the biggest shareholder.<\/p>\n
His net worth is about $628 million, according to the Bloomberg Billionaires Index. As part of the plan for Brait, Wiese would reduce his exposure by selling shares to Arbiter.<\/p>\n