Grand Parade Investments CEO resigns after leading turnaround
Mohsin Tajbhai has resigned as the CEO of Grand Parade Investments (GPI) and will leave the investment holding company next month.
He was appointed to the helm of the company, valued at R1.59bn on the JSE, in 2019 and will continue to serve on the board as a nonexecutive director to help with the transition.
“Mohsin has achieved his objectives as CEO and has decided to embark on new challenges,” the company said in a statement yesterday.
“He has been instrumental in leading the turnaround of GPI through the implementation of GPI’s value unlock strategy, which has culminated in the mandatory offer by GMB.
“The mandatory offer is the last step in the value unlock strategy, which has resulted in a significant value unlock for all shareholders.”
Over the past few years, GPI has set out to unlock value for shareholders by selling underperforming investments, including its stake in fast-food chain Burger King and unbundling its interest in restaurant franchiser Spur Corporation.
Business Day reported last month that GPI found itself in a rare position for an investment company — trading at a premium to its net asset value (NAV).
The group, which is now controlled by investment banker Greg Bortz’s GMB Liquidity Corporation (GMB), was trading at a 27% premium to NAV on March 24 — a stark contrast to just three years ago when the shares offered a more than 30% discount.
Most investment companies trade at marked discounts to NAV — including JSE stalwart Remgro, where the gap is roughly 45%.
The premium might be explained by GPI’s renewed focus on cash-generating gaming assets and a commitment to reduce what in previous years were exorbitant head office costs.
GMB has already indicated a willingness to retain GPI’s valuable gaming assets — most notably minority stakes in the GrandWest casino in Cape Town and alternative gaming business Sun Slots — and to build out the portfolio.
Bortz is a main shareholder in the Kenilworth Race Course, and one of his partners in that venture is the founder and owner of sports betting business Hollywoodbets. GPI’s interim financial statements showed that its profit soared as the hospitality sector continued its recovery, helped by a strong performance by the gaming assets that are controlled and operated by Sun International.
A reduction in the costs of its corporate head office also boosted the bottom line.
Profit from continuing operations jumped 41.3% year on year to R42.7m and more than doubled to R32.3m for SunWest, which owns Grand West in Cape Town.