Premier Foods shareholder Brait raises R3bn in rights issue
Proceeds would be used to refinance a portion of debt and improve its liquidity, group announced in November
Investment firm Brait, a major investor in Premier Foods and health club chain Virgin Active in SA, has raised R3bn through a convertible bond offer to refinance its debt, the group said on Monday.
The JSE- and Luxembourg Stock Exchange-listed investment holding group first announced the rights offer in November, with the group’s interim results for the half year to end-September, outlining that proceeds would be used to refinance a portion of the existing debt facility and improve its liquidity.
The announcement of a second rights offer in fewer than two years caused the Brait share price to nosedive more than 10% to about R4.05.
On Monday morning, after the announcement of the capital raise completion, the share was down 0.89% to R4.45.
Brait, a stakeholder in glass manufacturer Consol, announced in November that it had entered into a sale agreement with glass and metal supplier Ardagh.
The Ireland-based trader intends to acquire 100% of the Consol ordinary shares for an equity value of R10.1bn and subsequently acquire operations in SA, Nigeria, Ethiopia and Kenya.