Brait deal to take Shoprite private collapses

A rising share price has derailed Brait’s plans to delist South African retailer Shoprite from the Johannesburg exchange.

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.