(Incorporated in the Republic of South Africa)
(Registration number: 1997/003548/06)
Share code: GPL
(“GPI” or “the Company”)
DISPOSAL OF INTEREST IN BURGER KING (SOUTH AFRICA) RF PROPRIETARY LIMITED AND GRAND FOODS MEAT PLANT PROPRIETARY LIMITED
Shareholders are referred to the announcement released on SENS on 22 February 2021 (“Full Announcement”), advising shareholders that the Company’s wholly‑owned subsidiaries, Grand Foods Proprietary Limited (“GFMP Seller”) and Grand Foods Investments 1 Proprietary Limited (“BKSA Seller”) concluded a share purchase agreement with ECP Power and Water Holding LLC (“ECP”), an affiliate of ECP Africa Fund IV LLC, on 19 February 2021, pursuant to which (i) the BKSA Seller will sell all of the shares it holds in Burger King (South Africa) RF Proprietary Limited (“BKSA”) and (ii) the GFMP Seller will sell all of the shares it holds in Grand Foods Meat Plant Proprietary Limited (“GFMP”) to ECP.
GPI is an investment holding company with minority interests in the gaming industry and controlling interests in the food and manufacturing industry. GPI has historically traded at a significant discount to its intrinsic net asset value (“iNAV”), with a large portion of the discount attributed to its food and manufacturing investments. Over the last 2 years management has undergone a process of restructuring the business with the main aim of reducing the discount to iNAV. This process involved discontinuing loss‑making businesses and improving the profitability of its operational food and manufacturing businesses. The restructure resulted in a vast improvement in profitability, which assisted in reducing the discount.
The next phase of the journey to reduce the discount and unlock value for shareholders is the controlled and selected sale of GPI’s attractive portfolio of assets. The sale of GPI’s interest in BKSA and GFMP represents a significant milestone in this value unlock strategy for GPI shareholders.
BENEFITS FOR SOUTH AFRICA
GPI played a pivotal role in bringing Burger King to South Africa. Through this sale to ECP, GPI has attracted much‑needed foreign investment that will support the growth of BKSA going forward. This should have a positive impact on BKSA and job creation.
NOTICE TO SHAREHOLDERS
This short‑form announcement contains only a summary of the information in the Full Announcement made on SENS and does not contain full or complete details. For additional information, please refer to the Full Announcement, as released on SENS on 22 February 2021 and as available for viewing on the Company’s website at www.grandparade.co.za.
In addition, the Full Announcement is available for inspection and copies may be requested and obtained in person, at no charge, during normal business hours from 22 February 2021 until 31 March 2021 (both days inclusive), from the registered office of the Company at 33 Heerengracht, Foreshore, Cape Town and from the offices of PSG Capital, the Sponsor, at 1st Floor, Ou Kollege, 35 Kerk Street, Stellenbosch, 7600 and 2nd Floor, Building 3, 11 Alice Lane, Sandhurst, Sandton, 2196.
Any investment decisions by investors and/or shareholders should be based on consideration of the Full Announcement published on SENS and on the Company’s website, as a whole.
This announcement is the responsibility of the directors of the Company.
22 February 2021