the g spot
End of the Grand Parade whopper
It’s the beginning of the end for Grand Parade. Its decision to branch out into the restaurant business by bringing Burger King to SA has, in the end, been part of its undoing
It’s the beginning of the end for Grand Parade, the investment company formed in 1997 by thousands of investors from formerly disadvantaged Cape communities. Initially the empowerment partner in the GrandWest casino, Grand Parade listed on the JSE in 2008 and branched out into the restaurant business five years later when it brought Burger King to SA, pumping R750m into the fast-food chain. That has, in the end, been part of its undoing. We asked CEO Mohsin Tajbhai whether the decision to sell out was the only way to unlock value for shareholders.
MT: When this current management team took over we were trading at about a 40% discount to NAV. And the decisions that we made — getting Burger King to be profitable, getting the meat plant to be profitable, Mac Brothers … that assisted in narrowing that discount but I think we’re still trading at about a 25% discount to intrinsic NAV...
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