In November last year, Ethos Capital and Ethos Fund VII entered into a binding agreement with Brait whereby Ethos committed to invest R1.35 billion in Brait as part of an equity capital raise by Brait of at least R5.25bn and up to R5.6bn.
This comes after Ethos Capital announced a strategic equity partnership with Brait SE, which entailed providing a strong platform to maximise value through the realisation of assets in Brait’s portfolio and returning capital to shareholders in the medium term. The strategic partnership with Ethos, as part of a recapitalisation process at Brait, puts the company in a strong position for the future and marks the conclusion of an extensive process to materially reduce the debt on its balance sheet and maximise shareholder value.
Ethos Capital said it would offer the shares in the ratio of 58.47953 rights offer shares for every 100 existing Ethos Capital A ordinary shares held on the record date for its rights offer, which is January 24.
The rights offer price represents a 0.4 percent discount to the 10 day volume weighted average price of Ethos Capital’s A ordinary shares as of January 13. “Shareholders are advised that the company has received all necessary approvals to implement the Ethos Capital rights offer and the Ethos Capital rights offer is unconditional,” the group said.