Investment holding company Brait says it plans to list Virgin Active by December 2027, marking a critical step in its strategy to unlock shareholder value through the gradual monetisation of its portfolio.
The investment group, backed by billionaire Christo Wiese, said the fitness chain represented nearly 60% of its total assets.
In its interim results for the six months to end-September, Brait described the planned Virgin Active listing, which was previously earmarked for 2026, as the “next key step” in its value-unlocking strategy. Work is under way to optimise the outcome, including refinancing Virgin Active’s global debt facilities and exploring capital-raising and listing options ahead of the target date.
“Brait’s strategy remains to unlock value through the sale or monetisation of its asset base. The next key step is raising capital or the listing of Virgin Active,” it said in Thursday’s results presentation.
The plan comes as Virgin Active continues a steady turnaround, showing broad-based revenue growth and a recovery in profitability after years of post-pandemic related strain.
The global health club operator reported a 42% jump in earnings before interest, taxes, depreciation and amortisation (ebitda) and an 11% rise in group revenue for the period, boosted by strong membership performance in its core markets in SA, Italy and the UK.
Brait values its 67.7% stake in Virgin Active at R10.1bn, based on a maintainable ebitda of £120m (R2.682bn) and a forward valuation multiple of 9.25 times, which is a 15% discount-to-peer average, including Planet Fitness. The valuation reflects Virgin Active’s improved operational momentum, which has been driven by a major club refurbishment programme, new sites in Europe and Asia, and the integration of the Kauai wellness brand.
The gym chain has also intensified capital investment, increasing its annual spend from £58m in 2024 to £96m this year to modernise clubs and expand into new wellness offerings.
According to the presentation, Virgin Active now operates across six global markets with more than 1-million active members, including 631,000 in Southern Africa, 192,000 in Italy and 140,000 in the UK.
Brait said the focus remained on consolidating the gym’s leadership in premium fitness while transforming it into a broader wellness business, targeting a larger consumer base through digital, nutrition and lifestyle services.
“The increase in growth capex will allow the company to continue to consolidate and grow its leading position in its key markets,” Brait said.
The investment holding company’s strategy has been to simplify its structure and return capital to shareholders through a phased exit of its core holdings. Alongside the planned Virgin Active listing, Brait continues to assess options for its stake in Premier Foods and has begun preparing for the disposal of its UK fashion investment, New Look.
Brait’s portfolio comprises three core investments: Virgin, Premier and New Look. Virgin Active remains the largest, accounting for 59.2% of the group’s total assets. Premier, in which Brait holds a 32.3% stake, represents 37.3% of assets and is valued at R6.35bn. New Lookmakes up a small 2.8% of assets, with a carrying value of R474m.
If successful, the 2027 listing would return one of the world’s leading health and wellness brands to public markets at a time when fitness, lifestyle and nutrition businesses are enjoying renewed investor interest globally.
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