VCP buys a stake in Grand Pa­rade

Business Day - - FRONT PAGE - Marc Hasen­fuss

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.

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