Brait’s shares hit seven-year low as net asset value plunges
The investment holding company is trading at a large discount despite the reduction in net asset value
Brait’s shares dropped to a seven-year low on Thursday after the investment holding company said the net value of its assets had fallen sharply amid “challenging” conditions.
The company said in a trading statement on Thursday its reported net asset value per share in the year to end-March fell between 23.4% and 27%, to between R40.75 and R42.75.
Brait’s shares fell as much as 9.2% to R21.21 on Thursday morning, the worst level in about seven years. The stock is trading at a gaping discount despite the reduction in net asset value.
“The challenging environment has resulted in the decline of the respective peer-group average multiples for each of Brait’s portfolio companies,” it said.
As such, Brait had reduced the valuation multiples for Virgin Active, Premier and Iceland Foods.
Brait said earlier in May it had reduced its exposure to investee company New Look following the completion of a restructuring exercise undertaken by the British high street retailer. This happened after the end of Brait’s financial year.
Brait’s equity investment in New Look remains valued at zero, it said on Thursday.
Brait said it plans to publish its results on or around June 18.