Brait deal to take Shoprite private collapses

Brait, the South African merchant bank has abandoned talks to take South African supermarket group Shoprite private, according to a statement from the retailer.

Brait in April made a revised offer of 28 rand a share, or around R14.2 billion ($2 billion; $1.5 billion) for Shoprite.

Shoprite said “representatives of Shoprite and Brait have been unable to agree on revised terms due to the effluxion of time and market and share price movements”.
 
As a result, the two groups have mutually agreed to terminate negotiations, it said.

John Gnodde, Brait executive director,  said in a statement that the strong rise in Shoprite’s share price had “taken the transaction away from the targeted return criteria required”.

Shoprite’s Christo Wiese said: “As a major shareholder I was in favour of Brait’s proposal, but as chairman I became concerned that continued uncertainty would affect staff morale. This concern is fully appreciated by Brait’s management.”

The buyout proposal was made on 4 April through Brait IV Partnership, a fund affiliated with Brait South Africa. As a result of the deal, Shoprite would have delisted from the Johannesburg Stock Exchange.
 
Shoprite’s share price fell 3.8 percent to 32.60 rand on the news.