By Nqobile Dludla
JOHANNESBURG, Feb 19 (Reuters) – Grand Parade Investments (GPI) Ltd said on Wednesday it is selling the Burger King South Africa franchise and a related burger-making plant to private equity firm ECP Africa Fund for 697 million rand ($47 million).
The announcement sent shares in GPI up 9.09% to 3.60 rand, their highest level since Dec. 11.
ECP Africa said that despite a difficult economic climate, it could double the number of Burger King outlets across South Africa in the next five years.
GPI bought the Burger King franchise in 2012, betting on South Africa’s lucrative fast-food market, consumer appetite for flame-grilled burgers and their price appeal.