Virgin Active's shareholders boost it with R1.4bn, but much is likely to be spent outside of SA

Virgin Active, more than two-thirds of which is held by Christo Wiese-backed Brait, is still seeing high rates of membership terminations in South Africa, which has resulted in a change of its sales commission structure. 

Brait says the health and fitness business's shareholders are looking to inject £60 million (R1.4 billion) in the form of convertible preference shares into the gym group. The proceeds of that capital injection, which comes largely from offshore shareholders, will be used to grow the gym chain in markets like Italy, where it is enjoying good momentum.

Meanwhile clubs in the local market, where growth is comparatively stagnant, will be more likely get some money for refurbishments.