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| New Look owner Christo Wiese plans China expansion | New Look owner Christo Wiese plans China expansion |
| (about 1 hour later) | |
| South African retail tycoon Christo Wiese wants to expand New Look in China after paying nearly £800m for the UK fashion chain last month. | South African retail tycoon Christo Wiese wants to expand New Look in China after paying nearly £800m for the UK fashion chain last month. |
| The septuagenarian billionaire’s investment company, Brait, bought New Look for £780m from private equity firms Apax and Permira last month. | The septuagenarian billionaire’s investment company, Brait, bought New Look for £780m from private equity firms Apax and Permira last month. |
| The deal came weeks after Brait splashed out £682m on an 80% stake in Virgin Active, the fitness chain founded by Sir Richard Branson. Wiese said he had had up to £5bn for further deals. Brait also owns 19% of Iceland, the British frozen food retailer and is backing a new discount clothing chain, Pep & Co, which plans to open 50 UK stores by the end of August. | |
| Wiese told the Financial Times that Brait did not intend to interfere with New Look’s management and would be a long-term investor. He said Brait could provide a cash injection if needed. | |
| “The previous owners were typical private equity players, in other words ‘show us the cash and we have got a time limit’. Brait is not like that,” he said. “Brait is a long-term holder, happy to support management in their aspirations without the sword of an exit, be it an IPO or a trade sale, hanging over their heads and without the constant pressure to generate free cash.” | “The previous owners were typical private equity players, in other words ‘show us the cash and we have got a time limit’. Brait is not like that,” he said. “Brait is a long-term holder, happy to support management in their aspirations without the sword of an exit, be it an IPO or a trade sale, hanging over their heads and without the constant pressure to generate free cash.” |
| He described New Look as the “right vehicle” to bolster his presence in China. The retailer opened its first stores there last year and has plans for 50 new shops in the country this year. | He described New Look as the “right vehicle” to bolster his presence in China. The retailer opened its first stores there last year and has plans for 50 new shops in the country this year. |
| Wiese also believes the eurozone holds plenty of growth opportunities despite its economic malaise. “People talk about Europe having gone ex-growth, I don’t necessarily agree with that but the way Europe looks is going to change, there’s going to be a lot of lower [income] people,” he said. | Wiese also believes the eurozone holds plenty of growth opportunities despite its economic malaise. “People talk about Europe having gone ex-growth, I don’t necessarily agree with that but the way Europe looks is going to change, there’s going to be a lot of lower [income] people,” he said. |
| Aside from his retail interests, Wiese is on the lookout for deals in new sectors such as renewable energy. He told the FT that Brait could “easily” do another deal worth £2.6bn to £5.2bn. He sold one of his South African retail groups, Pepkor, for $5.7bn last November. | |
| He said Brait receives “three or four proposals” a month. “The banks are all over you. | |
| “What I do think is still lacking in our broader range of businesses, is something that I like to describe as sunrise industries; renewable energy, these disruptive technologies. I would like to have an involvement in that . . . but you have got to have the right candidate.” |