SHAREHOLDERS LACK APPETITE
Grand Parade bails out of Spur deal
Empowerment group Grand Parade Investments (GPI) – which is rolling out the Burger King franchise in SA — has cancelled its premium-priced order for a huge helping of Spur Corporation shares. Last month, GPI – which already owns a 10% stake in Spur — detailed plans to acquire up to 19.46-million shares in the restaurant and fast-food conglomerate from institutional asset manager Coronation Fund Managers. The spicy twist to the transaction was that GPI proposed paying Coronation a premium price of R40/share – well above the ruling Spur share price on the JSE. The deal would have secured GPI a 28% stake in Spur, giving the empowerment company a valuable negative control share block. But on Friday GPI announced that the Spur transaction did not have the support of certain shareholders, which meant the share purchase could not proceed.