CAPE TOWN – BRAIT shares jumped the most in 24 years on speculation that it plans to sell a stake in fitness chain Virgin Active.
The share price soared up to 16 percent to R13.24 just after midday on Friday, valuing the company at R6.7 billion after Sky News reported online, citing unnamed sources, that global investment bank Morgan Stanley had been appointed to find a buyer for a stake in Virgin Active. The shares closed at R13.21.
Virgin Active accounts for 55 percent of Brait assets.
The fitness chain has about 240 clubs, with some 1.2 million members across eight countries, including the UK, Italy and South Africa. Brait declined to comment on the matter on Friday.
The plan to sell a large component of the investment company's assets follows the annual general meeting last Wednesday where, according to an analyst who chose to remain anonymous, some shareholders had clearly expressed dissatisfaction with the way the company was performing.