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.