Boardroom battle brewing at Grand Parade
Disgruntled investors have been lining up well-qualified candidates to possibly take over from long-serving directors
Disgruntled minority shareholders at Cape Town-based empowerment company Grand Parade Investments (GPI) are intent on beefing up lean returns by shaking up the board of directors. But GPI’s long-serving directors seem affronted that their servings are so underappreciated. This should make for an intriguing general meeting at the end of this month — perhaps recalling the excitement of 2007, when an unlisted GPI was desperately fending off Shaun Rai’s Cape Empowerment Trust. At the time of going to press, GPI was trading at a discount of more than 70% to an intrinsic NAV underpinned mainly by the SA master franchise for fast-food icon Burger King, as well as significant minority holdings in top casino property GrandWest, alternative gaming business Sun Slots and restaurant conglomerate Spur Corporation. Such a large discount — given that investment trusts traditionally offer discounts between 15% and 25% — would usually point to strategic stagnation or iffy assets. Neither really appl...
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