Value Capital raises the stakes in Grand Parade


Value Capital raises the stakes in Grand Parade


Published Date: 2019-04-11 | Source: Stephen Gunnion | Author: Stephen Gunnion

Value Capital raises the stakes in Grand Parade

The activist investor has grown its shareholding to above 20% as chairman Hassan Adams reduces his stake.

Value Capital Partners (VCP) has raised its shareholding in Grand Parade Investments to over 20% in a sign that it could be poised to exert more influence over the gaming and restaurant investment group. In December, VCP doubled its stake from just over 8% to 16.6%. Yesterday, Grand Parade said its shareholding had grown to 20.88%. The move comes after the Nadeson Trust, of which Grand Parade chairman Hassan Adams is the major beneficiary, sold 20-million shares for R60 million.

VCP describes itself as an "engaged shareholder" and also owns sizeable interests in Sun International, Altron, PPC, Adcorp, Novus Holdings and African Phoenix. It's led by former Brait executives Anthony Ball and Sam Sithole. They use their private equity skills in the listed space to target troubled companies they can turn around. It says its portfolio of strategic investments includes businesses that are undervalued. It takes a position and works "collaboratively" with their boards of directors to improve profitability.

Grand Parade recently announced it was reverting back to an investment holding company after burning its fingers with the acquisition of the Dunkin' Donuts and Baskin-Robbins franchises in South Africa, which were placed under liquidation in December. It's also focused on turning a profit at its Burger King chain of restaurants, with plans to roll out more drive-thru outlets.

Some investors have questioned its foray into the fast-food sector and away from its more profitable gaming and leisure investments, including Sun Slots, SunWest and Worcester Casino.

Grand Parade's shares rose 11.1% to R3 yesterday.


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