VCP buys a stake in Grand Parade
There has been another twist in the tale of embattled empowerment group Grand Parade Investments (GPI) with highly regarded turnaround specialists Value Capital Partners (VCP) acquiring an 8.05% stake just ahead of Wednesday night’s extraordinary general meeting. The stake is valued at about R115m.
There has been another twist in the tale of embattled empowerment group Grand Parade Investments (GPI), with highly regarded turnaround specialist Value Capital Partners (VCP) acquiring an 8.05% stake just ahead of Wednesday night’s extraordinary general meeting.
The VCP stake is valued at about R115m.
The extraordinary general meeting was reconvened after an adjournment in late October to consider calls from a group of activist shareholders, holding about 12.5% of GPI shares, to appoint four new directors with fast-moving consumer goods and strategic experience to the company’s board.
GPI has steadfastly opposed the proposed board changes, even though the company’s shares have plunged to levels at which the discount on intrinsic value is more than 50%.
At the adjourned extraordinary general meeting, shareholders spoke out critically of the GPI board’s decision to cull investments in cash-spinning gaming assets to acquire fast food brands most notably the master franchise for Burger King in SA that have generated ongoing losses.
A Sens statement released on Wednesday noted that VCP is the adviser to Peregrine Fund Platform, the registered fund investment manager for various funds advised by VCP. VCP has enjoyed early success in welldocumented turnaround interventions in tech group Altron and services group Adcorp.
VCP is also involved at shareholder level in gaming giant Sun International, the majority shareholder in three of GPI’s remaining gaming investments in the form of the GrandWest casino in Cape Town, the Golden Valley casino in Worcester and limited payout machine operator SunSlots.
GPI’s share price rallied from 221c in mid-November on the rumours of VCP acquiring a stake. The share finished at 305c on Wednesday.