JSE-listed investment holding company Brait has announced the sale of its 63.1% interest in British supermarket chain Iceland Foods for £115-million.
The disposal is in line with the company’s revised strategy to maximise value realisation from its assets over the next five years.
The interest has been sold to a newly established company that is wholly-owned by Iceland Foods founder and executive chairperson Malcolm Walker and CEO Tarsem Dhaliwal.
The first tranche of £60-million was paid to Brait on June 8, with the remaining instalments of about £27-million and £28-million due to be paid on June 30, 2021, and July 29, 2022, respectively.
Brait intends to use the proceeds to repay a portion of a revolving credit facility held by its subsidiary Brait Mauritius.
The proceeds will also provide growth capital for Brait’s two cornerstone assets, lifestyle and fitness company Virgin Active and fast-moving consumer goods manufacturer Premier.