Fi­nally get­ting se­ri­ous

Finweek English Edition - - INSIDE -

Spur an­nounced that it is tak­ing a 51% stake in Ro­coMa­mas for an undis­closed amount, but be­ing such a small deal that is not im­por­tant. What is im­por­tant is the deal it­self, which saw the Spur share adding over 6% on the day (some R250m to the mar­ket cap of the company). With only four stores, Ro­coMa­mas is not go­ing to add any­where near that sort of value to Spur in the next few years, but the mar­ket has spot­ted Spur’s man­age­ment fi­nally get­ting se­ri­ous. I have long crit­i­cised Spur for just rest­ing on its suc­cess. This deal shows that Spur is fi­nally wak­ing up and go­ing head-to-head with the mar­ket lead­ers (most no­tably Fa­mous Brands*). The im­me­di­ate ben­e­fit for Ro­coMa­mas is that it can plug into Spur’s dis­tri­bu­tion net work and cen­tralised kitchen. The 51% stake will also keep Spur man­age­ment on board and fo­cused on grow­ing the business.

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