GPI announces sale of BurgerKing and GrandFoods for R700m
DURBAN – Grand Parade Investments (GPI) surged more than 9percent on the JSE after the investment holding company announced the sale of Burger King South Africa and Grand Foods Meat plant for nearly R700million.
GPI said it would sell the two entities to Emerging Capital Partners, a private equity group with more than $3.2billion (R48.08bn) in funds raised.
GPI said Burger King had an enterprise value of R670m, while Grand Foods Meat plant was R27m.
The sales come 12 months after GPI closed down Dunkin Donuts and Baskin Robbins in South Africa due to poor performance. Burger King reported an improved operational performance in the year to end June and exceeded R1bn in sales after its sales increased by 10.3percent, boosted by the opening of 10 restaurants.
Chief executive Mohsin Tajbhai said GPI wanted to focus on maximising value for their shareholders in describing the strategic direction that GPI is taking.
Source: iol.co.za