Another blow for Wiese as Brait wrestles with losses

South African billionaire Christo Wiese received more bad news as shares of the investment company in which he is the biggest shareholder fell after the firm posted an annual loss.

Brait SE, in which Wiese owns a 35% stake, said net asset value was R57.32 at the end of March, compared with R78.15 a year earlier, as retailer New Look struggled amid a sales slump on the UK’s shopping streets. The company’s other assets include fitness chain Virgin Active and supermarket chain Iceland.

Wiese’s net worth plunged when Steinhoff International Holdings, in which he was the largest investor, reported accounting irregularities late last year.

While Brait is unrelated to the scandal-hit clothing and furniture retailer, its stock has slumped 42% over the past 12 months. He is now worth about $2.3 billion, according to the Bloomberg Billionaires Index, compared with $5 billion before the Steinhoff scandal erupted.

Brait shares lost as much as 6% before paring losses to trade 1.3% lower at 12.28pm in Johannesburg. The company posted a R10.1 billion full-year loss, compared with R16 billion a year earlier, according to a statement yesterday.

Wiese quit as a non-executive director of New Look last month and as non-executive chairperson of Brait South Africa as he gears up for a legal battle with Steinhoff. He’s suing the owner of Conforama in France and Mattress Firm in the US for R59 billion.

Wiese has sold shares in Shoprite, Brait and Aspen Pharmacare to raise cash. His stake in Steinhoff was cut to 6%, from 20.5%, after banks sold stock put up by the former chairperson to secure margin loans. – Bloomberg