Steroids needed at Virgin Active
Brait’s view of the gym chain, a major muscle group in its assets, could be Pollyannaish
On the face of it, Brait, the JSE-listed investment holding company, presents a relatively uncomplicated investment case. With a clear objective to unlock value from its portfolio of assets within the next two years, the company trades at a significant 37% discount to NAV, raising the inevitable question: is this an opportunity, or simply a reflection of market scepticism?
The group’s portfolio is concentrated in three main assets: Virgin Active (61%), Premier (28%) and New Look (5%). The remaining 6% of Brait’s asset base comprises net cash and other smaller items. While New Look, the UK-based fashion retailer, is too small to shift the needle in any meaningful way, Premier and Virgin Active form the crux of any investment thesis around Brait...
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