Simon’s stock tips

BRAIT SA

Questionable golden handshake

ucked into the Brait rights offer document released in late January, in which they outline the plan to raise over R5bn, is this little nugget: “Brait has agreed with the existing Corporate Advisors that fees payable in terms of the Advisory Agreement forthe period from 1 October 2019 to the last day of the month following the completion of the Rights Offer, together with the cost of terminating the Advisory Agreement (including retrenchments and possible office closure costs) shall be approximately [R200m].” In other words, the very people who got Brait into this massive hole – destroying some R75bn of shareholder value – will get a R200m golden handshake? They should be paying back the bonuses they received over the last decade, not being paid large sums to slink off into the dark