Billionaire Christo Wiese's Brait Moves to Take Virgin Active Public

Brait is seeking to position one of its biggest investments, fitness chain Virgin Active, for a potential listing or sale, beginning with a R2.5 billion rights offer. The move was revealed in Brait's results for the year through March 2026, released on Thursday, 18 June.

Brait is an investment holding company backed by billionaire businessman and former Shoprite chairman Christo Wiese. Its assets include the fitness chain Virgin Active, food producer Premier, and UK apparel chain New Look. Brait's investment in Virgin Active is valued at approximately R9.39 billion.

Strategic Rationale

Brait said it wants to optimise Virgin Active's positioning for a potential listing or sale, following a series of initiatives since 2020 to reduce net debt from R7 billion to its current level of R1.7 billion. The company has achieved this through disposals and the listing of its stake in Premier in March 2023.

"Virgin Active is in the final stages of refinancing its existing South African and International facilities, which, together with the Virgin Active Capital Raise, will result in an interest saving of £14 million (R304.20 million) per annum," Brait said.

Virgin Active Capital Raise and Rights Offer

Virgin Active will raise £175 million (R3.80 billion) from existing shareholders to repay debt and achieve a net debt/EBITDA ratio of 2.0x. Brait will contribute £108 million to fund its pro-rata share of the capital raise. The funds will also support the club refurbishment plan and new club rollout strategy.

Additionally, Brait will undertake a R2.5 billion rights offer at R1.51 per share, representing a 43% discount to the net asset value per share post the rights offer.

Performance and Listing Timeline

Brait reported a strong performance for the 2026 financial year, with investment value gain up 51.05% to R1.8 billion. Profit for the year almost doubled to R1.32 billion, from R672 million in the 2025 financial year. Basic earnings per share rose by just under 48% to 34 cents.

Virgin Active delivered a bumper year, with EBITDA growth of 37% to £110 million (R2.39 billion), driven by new gym rollouts and refurbishments. "Growth forecast from new gyms and the refurbishment program will position the business well for an exit in the next two years," Brait said.

The company said Virgin Active has fully recovered from the Covid-19 pandemic and is now well-positioned for growth. "Given current market conditions, the target date for a listing of Virgin Active is the second half of 2027 or the first half of 2028," it added.

Brait previously told Bloomberg that a listing for Virgin Active is "most likely" to be in the UK, with a secondary offer in Johannesburg.

New Look Sale

Brait is also looking to sell its stake in New Look, with its current holding valued at R723 million.

Market Sentiment: 

The sentiment is cautiously positive, reflecting a structured and well-timed value-unlock strategy. Brait's decision to position Virgin Active for a public listing comes at a time when the fitness chain has fully recovered from the pandemic and is delivering strong EBITDA growth (37%) with a clear pipeline of new gyms and refurbishments. The £175 million capital raise to reduce debt and achieve a 2.0x net debt/EBITDA ratio is a prudent step to make the business more attractive to public market investors. The £14 million annual interest saving from refinancing further improves the financial profile. The R2.5 billion rights offer at a 43% discount to NAV is a significant ask of existing shareholders, but aligns their interests with the listing goal and provides the necessary capital to execute the growth plan. The 2027/2028 listing timeline — likely in the UK with a secondary Johannesburg listing — provides clarity and a medium-term catalyst. For Christo Wiese and Brait, this is a major potential exit from a long-held asset, following the successful Premier listing. The disposal of New Look, valued at R723 million, would further simplify Brait's portfolio and return capital to shareholders. Rising gasoline prices and inflation concerns have a less direct impact on the fitness industry, though consumer spending on gym memberships could be affected if discretionary income is squeezed. However, Virgin Active's refurbishment and new club rollout strategy suggests confidence in sustained demand. For investors, the key questions are whether the rights offer will be fully subscribed, how international investors will receive the UK listing, and whether Virgin Active's growth trajectory can be sustained. Brait's strong group performance (51% investment value gain, nearly doubling profit) provides a supportive backdrop. The 2027/2028 timeline is sufficiently distant to allow execution, but close enough to maintain focus. Overall, a well-articulated strategy to unlock value from a crown jewel asset, with the rights offer serving as both a funding mechanism and a commitment signal. The success will depend on Virgin Active's continued operational performance and market conditions at the time of listing. For now, Brait is executing a deliberate and transparent pathway to monetisation, which should be viewed positively by shareholders.

Disclaimer:
This content has been generated using AI technology and is intended for informational purposes only. While efforts have been made to ensure accuracy and relevance, this text should not be considered professional advice or an official statement. Always verify information from authoritative sources before making any decisions. This is not financial advice.