STAKE IN GREECE CHAIN
Gold Brands stays on acquisition trail
AltX-listed Gold Brands has spent about R12.2m — the equivalent of just less than 15% of its market capitalisation of R82.5m — on deals
In just seven days, AltX-listed Gold Brands has spent about R12.2m — the equivalent of just less than 15% of its market capitalisation of R82.5m — on deals. The latest, announced on Monday relates to the acquisition of a 50% stake in Hot-Hot B Holdings, which owns Hot Hot Burger Bar — a themed burger restaurant chain operating in Greece and Crete — for a consideration of €800,000. The purchase consideration is payable in cash against profit warranties of €916,753 for the year ending January 31. Finalisation of the transaction is subject to the findings of a due diligence process. The founders of Hot Hot would continue to manage the day-to-day operations of the business, Gold Brands said. Vunani Securities small and medium cap analyst Anthony Clark said Gold Brands was "falling into the classic trap of trying to expand too quickly when their focus should be on fixing and growing what they already have". "I would be worried at all this rapid pace of running off and doing deals. Perhap...
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