“The proposed transaction offers Grand Parade Investments (GPI) a unique opportunity to subscribe for a meaningful stake in Spur on attractive terms,” Grand Parade said in a statement.
“The proposed transaction also offers GPI and its group businesses an opportunity to partner with a leading franchise restaurant operator to potentially unlock meaningful synergies for the benefit of both parties.”
The purchase is part of a Broad-Based Black Economic Empowerment transaction for a total purchase consideration of 294.7 million rand.
[DATA GPL:Grand Parade Investments] is a black-owned and controlled holding company headquartered in South Africa with stakes in GrandWest casino, the Table Bay Hotel and Sibaya Casino, among others.
(READ MORE: Grand Parade to bring Burger King to South Africa)
“GPI has a track record of adding value to its investments and the board believes that the Proposed Transaction represents an attractive investment opportunity,” Grand Parade explained.
[DATA SUR:Spur Corporation Limited] is a steakhouse franchise that was founded in South Africa, and has franchises in Kenya, Tanzania, Nigeria, Mauritius and Ireland, among others. The Spur restaurant network currently includes 309 Spur Steak Ranches, 39 of which are located outside of South Africa.
(READ MORE: Spur Corporation sale hit 5.5 billion rand)
“The proposed transaction is in-line with GPI’s strategy to grow and diversify its investment portfolio beyond the gaming sector, focusing on businesses that meet management’s target IRR and other strategic objectives,” said Grand Parade.