Bloomberg News

Brait Raises 6.4 Billion Rand to Buy Pepkor, Premier Stakes

June 29, 2011

(Updates with company comment in second paragraph.)

June 29 (Bloomberg) -- Brait SA, South Africa’s largest private equity company, raised a larger-than-planned 6.4 billion rand ($936 million) in a rights offer and private placement to buy stakes in Pepkor Ltd. and Premier Foods Plc.

Strong demand for Brait’s shares meant the company raised 500 million rand more than it had been targeting, it said in a statement today. Proceeds will be used to buy shares in Pepkor, South Africa’s biggest clothing retailer, and Premier Foods, maker of Blue Ribbon bread and Snowflake flour.

Brait, based in Johannesburg, is transforming itself into an investment company to allow it to become a long-term investor rather than having the short-term profile of a private equity operator, it said on March 2.

Existing shareholders took up 81 percent of the offering, with the remainder sold to its underwriters through an auction arranged by the Luxembourg Stock Exchange today, Brait said.

The company’s investment team, led by Chief Executive Officer John Gnodde, bought a further 30.3 million shares in order to get an 18 percent stake in Brait, it said. Pepkor Chairman Christo Wiese’s Titan Nominees (Pty) Ltd. also bought shares in the offering, taking its stake to 33.3 percent, Brait said.

--Editors: Alastair Reed, Gordon Bell

To contact the reporter on this story: Stephen Gunnion in Johannesburg at sgunnion@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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