Grand Parade Investments increases its stake in Spur
Grand Parade Investments has done a share-purchase deal with Coronation Fund Managers to lift its stake in Spur Corporation to 28.82%
JSE-listed investment and empowerment group Grand Parade Investments (GPI) will increase its interest in Spur Corporation to 28.82% from 10% in a deal valued at up to R778.6m. But one market commentator said the premium investment for a noncontrolling stake, at R40 per share, may be a strategic move for the investment company. GPI had held about 10% of Spur’s issued ordinary shares, which it bought in 2014. It announced on Monday it had entered into an agreement with Coronation Fund Managers to purchase between 16.38-million and 19.47-million issued share capital of the Spur Corporation. De Wet Schutte, an equity analyst at Avior Capital Markets, said the transaction was “more strategic intent than the actual return on investment”. “It’s a longer-term investment; there [are] some synergies to be had down the line and I don’t think they are doing this purely from a holding company point of view,” said Schutte. “We believe they would look to more of a strategic acquisition than anythi...
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