Grand Parade Investments sells its interest in Burger King
South Africa's Grand Parade Investments (GPI) Ltd will sell its 95.36 percent stake in Burger King South Africa and all of Grand Foods Meat Plant to ECP Africa Fund for R670 million.
Can this be called failure?
The Money Show interviews Mohsin Tajbhai, Chief Executive Officer (CEO) of Grand Parade Investments.
I would not say that we failed. Over the last couple of years we've succeed in unlocking value in this business. We're not getting back the capital that we put in but we're getting close. We put in 750 million - the offer we got in the table is 670 million. We have overcapitalised over the last couple of years but we've managed to make changes that improved the profitability of the business and that has led to in my opinion a decent valuation of the business.Mohsin Tajbhai, Chief Executive Officer (CEO) - Grand Parade Investments.
Looking at where GPI was trading; looking at the discount - it's an extremely value unlock for our sharholders. We were trading at a 40 per cent discount over the last two years. We've narrowed that discount to between 20 and 30 per cent. We'll unlock further value for our shareholders I would not say it's a failed strategy. Yes overall, if you look at where we've come from - but you need to look at where we are at the moment.Mohsin Tajbhai, Chief Executive Officer (CEO) - Grand Parade Investments.
ICP is probably one of the biggest private equity firms on the continent; they're Kenya-based. They have vast experience and bring a wealth of knowledge - it is a good firm to accelerate the growth of Burger King in South Africa.Mohsin Tajbhai, Chief Executive Officer (CEO) - Grand Parade Investments.
Listen to the full interview below.
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning.
This article first appeared on 702 : Grand Parade Investments sells its interest in Burger King
The Money Show’s Bruce Whitfield interviews futurist Graeme Codrington and public health specialist Prof Susan Goldstein.Read More
New rental relief measures announced on Tuesday will amount to as much as 100% off for some retail tenants.Read More
21-day lockdown ban encourages the ongoing sale of illicit cigarettes and organised crime -Justice Project SA's Howard Dombovsky.Read More
Musician and television host at Republiek van Zoid Afrika says because of COVID-19people are all the same now.Read More
Charities Aid Foundation Southern Africa CEO Gill Bates says the main concern is those organisations that are on the fringes.Read More
World Wide Worx MD Arthur Goldstuck gives tips on what to do during an interview on Skype or something similar.Read More
George Glynos, head of research at ETM Analytics, says the those lockdowns are likely to be extended for longer than 21 days.Read More
Oscar van Heerden on the reasons he believes South Africa should not turn to the IMF for a general loan amid Covid-19 crisis.Read More
"The data will be de-identified after Covid-19," says Ahmore Burger-Smidt (Werksmans Attorneys). "Until then, is it secure?"Read More
Africa’s most developed economy is heading for a very cold economic winter, says Absa Senior Economist Peter Worthington.Read More