The Brait share price remained surprisingly firm on Tuesday after news of the lower-than-expected pricing of its R5.25bn rights issue. The issue price of R6.60 is a 48.6% discount on Monday’s share price of R12.85. This was little changed at the close of trade on Tuesday. Anyone who buys shares now and takes up their rights to the R6.60 issue will have an average price of about R9 after the rights issue is finalised.

The R9 could be the bargain of the century if you believe Brait’s net asset value (NAV) is anywhere close to the last reported figure, which was R38 a share in March 2019. More important is that you believe Ethos Private Equity, which is now running the Brait show, is capable of realising that sort of value within the next few years...

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