Grand Parade Investments (GPI), which has interests in food and gaming, has encountered another snag in its almost year-long effort to dispose of Burger King SA.

The Cape Town-based investment holding company, which has minority stakes in Sunwest International casino and restaurant chain Spur, said in a Sens statement on Thursday that the offer it had received to acquire all the shares it holds in Burger King SA had expired. GPI said a formal extension of the offer is being considered as it is “urgently negotiating” the sale and purchase agreement.

“Shareholders will be updated as to the progress of such negotiations in due course,” GPI said in the statement.

GPI entered into talks on February 18 2020 to sell its 95.36% stake in Burger King SA and the 100% it holds in Grand Foods Meat Plant to private equity outfit Emerging Capital Partners (ECP) Africa Fund IV. The deal was initially meant to be concluded by June 30, but on July 29 GPI announced that the terms of the sale had been renegotiated after Covid-19 wiped off about R100m of Burger King SA’s value.

The renegotiated terms assigned an enterprise value of R570m to the franchise, down from R670m when talks were first announced in February and lower than the R700m that GPI initially paid. The Grand Foods Meat Plant that is accompanying the sale of Burger King SA was valued at R27m in February but was estimated to be worth R23m by end-July.

The renegotiated transaction was scheduled for conclusion by November 30 or “such later date agreed between the parties”, according to a July 29 Sens announcement by GPI.



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