Grand Parade Investments SA to sell Burger King
The investment firm Grand Parade Investments (GPI) announced that it will be selling its 95.36 percent stake in Burger King franchise and all of Grand Foods Meat Plant to ECP Africa Fund for R697 million.
This is according to a report by Reuters Africa, which states that GPI signed a long-term master franchise agreement with Burger King in 2012, betting on South Africa’s lucrative fast-food market.
GPI adds that this has since changed because South African retailers have been struggling to boost sales sighting reasons such as a slowing economy, high unemployment rate and reduction in consumers’ spending power.
GPI also stated that its board decided that the best way to unlock value for shareholders is through a controlled sale of assets was to sell Burger King SA and Grand Foods Meat Plant representing the first phase of this strategy.
ECP Africa, a private equity fund manager that purchased the franchise states that it is focused on the growth in Africa, as it has 60 investments that include Eco bank, MTN Cote d’Ivoire and leading bottler of carbonated soft drinks, Atlas Bottling Corp in Algeria.
Written by: Staff Writer.
Guzzle Media
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