Could there finally be a change of guard at GPI?
Frenetic movements of the stock’s share price in significant volumes could signal some behind-the-scenes manoeuvres
Will the reconvened extraordinary general meeting of Grand Parade Investments (GPI) actually take place next week? The originally scheduled extraordinary general meeting was adjourned on the request of some shareholders wanting more information on why a consortium of activists are doggedly pushing for changes to the long-serving GPI board. Those reasons have now been published at the behest of the JSE and make for compelling reasons why new oversight is needed at board level in terms of capital allocation and corporate governance. The ongoing losses at GPI’s food businesses, especially Burger King, are clearly worrying. The tone of the adjourned meeting showed just how angry community shareholders are around the exchange of a chunk of GPI’s cash-spinning gaming assets for the cash-hungry food operations. Surely there must now be a fair chance that the GPI board will seek a compromise before the extraordinary general meeting in order to head off another confrontation with disgruntle...