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By Sandile Mchunu 
14h ago
Grand Parade Investments (GPI) informed its shareholders today that the date of execution of the share purchase agreement (SPA) for the sale of Burger King South Africa (BKSA) and Grand Foods Meat Plant (GFMP) has expired.
This comes after the investment holding company entered into the sale of the two businesses in February to Emerging Capital Partners (ECP) Africa Fund IV LLC for R670 million for Burger King and R27m for the Grand Foods Meat plant for R27m.
However, the value of the sale of the companies was revised down in September to R570m for BKSA and R23m for GPMP after the Covid-19 outbreak hurt the group’s earnings for the year through the end of June.
GPI was forced to reconsider its sales price after the pandemic, as its profits declined by more than 250 percent for the year ending June.
“Shareholders are informed that the date for the execution of the share purchase agreement with respect to the sale has expired. However, the parties are considering a formal extension of the offer while urgently negotiating the SPA. Shareholders will be informed of the progress of these negotiations in due course, ”the group said.
The sale of BKSA, which has more than 90 restaurants in the country, and GFMP comes after GPI closed Dunkin Donuts and Baskin Robbins in South Africa due to poor performance in 2019, in addition to selling its 10 percent stake in Spur Corporation. by R260m.
GPI’s share price was stable at R2.34 per share on the JSE Thursday afternoon, with a capitalization of R1.1 billion.
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