// New Look & Iceland shareholder Brait seeks financial restructuring within the next 5 years
// The firm also announced a recapitalisation plan including an equity raise
New Look and Iceland’s shareholder Brait is looking to realise its investments within five years.
The investment holding company, which also has a share in Virgin Active, said it is considering a financial restructuring.
Brait had formerly acted as a “long-term investment holding company”.
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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 firm also announced a recapitalisation plan including an equity raise, a refinancing of revolving credit and the d launch of a new convertible bond to raise between R14.4 billion and R14.7 billion altogether, “providing a holistic solution for Brait”.
“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,” Brait chairman Jabu Moleketi said.
“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.”