Brait SE receives final payment for Iceland Foods as it continues new strategy of maximizing value through the realization of existing assets.

Brait SE has confirmed it has received final payment of £48.5 million for the 63.1% controlling stake it held in Iceland TopCo Limited.

The company initially acquired a stake in Iceland Foods in 2012 and a subsequent stake in 2015. Iceland Foods management has expressed an interest in owning 100% of the company again for some time, and diligent cash management, together with reduced capital expenditure have provided sufficient liquidity for them to do so.

Brait disposed of its shareholding on the 8th of June 2020, in line with a new strategy announced to the shareholders by the Brait board on the 27th November 2019. The strategy revealed an intense focus on realizing value from its existing portfolio for the next five years. The stake was returned to Iceland Foods founder Sir Malcolm Walker CBE, together with Tarsem Dhaliwal – chief executive – through their newly established company NewCo, at a sale consideration of £108 million. The first tranche of £60 million was received on the 8th of June 2020

The Virgin Active owner said in a SENS announcement, it will use the proceeds to partially repay a revolving credit facility held by its subsidiary Brait Mauritius where the balance outstanding will be R2.7 billion (R4.6 billion as at 31 March 2020).

JSE:BAT opened trade at 3.5% higher at R3.25 on Wednesday morning.

PSG strengthens controlling interest in Curro Holdings after a successful rights offer.

Curro Private School, Roodeplaat, South Africa.

PSG Group – through their PSG Financial Services arm – has increased its controlling stake in Curro Holdings a week after the private education group confirmed a successful R1.5bn rights issue.

The group already held a 55.4% interest in Curro Holdings and have today confirmed a 4.6% purchase consideration to take their existing interest to 60%. This comes five days after Allan Gray Proprietary Limited’s clients, in aggregate, acquired a 5.39% stake in the private education group.

Curro recently reported a 7% increase in revenue to R1.59bn during the first six months of 2020 with a 12% rise in EBITDA from R415m in the corresponding period to R466m this year.

With the Covid-19 pandemic in full swing during the same review period, Curro experienced a decline in the number of learners for the first time since 2011, down from 62 698 to 59 967.

JSE:COH shares closed 2.89% lower at R8.06.

Sale of Burger King South Africa chain to continue as Grand Parade Investments looks to accelerate its asset disposals program.

Burger King outlet in Cape Town, South Africa.

Grand Parade Investments issued a trading statement on Monday afternoon confirming a fall in profits as a result of a national lockdown that saw all its operational businesses shut down for 30 days.

The Cape Town based company said all its other businesses – with the exception of Burger King South Africa – remained shut for the entire fourth quarter. BKSA was allowed to operate through home delivery only during the month of May, with all other service modes resuming from the beginning of June.

The group’s gaming businesses resumed operations in July under restrictive operational controls put in place to safeguard its staff and customers against the pandemic. These controls have since been relaxed in accordance with the national lockdown level imposed by national government.

Grand Parade Investments confirmed it will continue with the sale of BKSA, Grand Foods Meat Plant and their Kuilsriver based property – 33 Heerengracht Close – for a combined fee of R683 million.

33 Heerengracht Close, Kuilsriver, Cape Town.

Basic loss per share is expected to rise more than 300% from the previous year, from 8.48 cents to between 27.52 and 29.22 cents while headline loss per share will increase to the range of 13.18 to 14.96 cents, up from 8.91 cents in FY19.

The group has confirmed it has been engaging all primary lenders to renegotiate credit terms to avoid covenant breaches as well as rental holidays from landlords.

Grand Parade Investments Limited final results are expected to be published on the 23rd of September 2020

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