Further blow for billionaire Wiese as Brait struggles with losses

Billionaire Christo Wiese has received more bad news as shares of the investment company in which he’s 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 [per share] 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 [JSE:SNH], in which he was the largest investor, reported accounting irregularities late last year.

• READ: A Steinhoff guide for dummies - updated for 2018

While Brait is unrelated to the scandal-hit clothing and furniture retailer, its stock has slumped 42% over the past 12 months. The 76-year old is now worth about $2.3bn, according to the Bloomberg Billionaires Index, compared with $5bn before the Steinhoff scandal erupted.

Brait shares lost as much as 6% before paring losses to trade 1.3% lower at 12.28 in Johannesburg. The company posted a R10.1bn full-year loss, compared with R16bn a year earlier, according to a statement on Tuesday.

Wiese quit as a non-executive director of New Look last month and as non-executive chairperson of Brait South Africa [JSE: BAT], citing time constraints 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 R59bn.

• READ: SA billionaire Christo Wiese sues Steinhoff for R59bn

Wiese has this year sold shares in Shoprite [JSE:SHP], Brait and Aspen Pharmacare [JSE:APN] to raise cash. The billionaire’s stake in Steinhoff was cut to about 6% earlier this year, from 20.5%, after banks sold stock put up by the former chairperson to secure margin loans.