Grand Parade: Investors fancy the idea of a quick turnaround

Business

Grand Parade: Investors fancy the idea of a quick turnaround

Value Capital Partners bumps up its stake as founder gets shot of a large chunk of his shares – R60m worth

Larry Claasen


Can we expect a changing of the guard at gaming and restaurant group Grand Parade Investments (GPI)?
Last week the executive chairperson and founder, Hassen Adams, sold 20 million of his 63 million shares for R60m. This reduced his holding from 13.47% to about 9.35%.
The disposal saw Adams become the third-largest shareholder after the Chandos Trust, which is aligned to former banker GT Ferreira and has a holding of 9.94%, and Value Capital Partners (VCP), which initially held a 16.42% stake.
No one said it out loud, but it looks like Adams unloaded his shares to VCP. A day after he sold, the investment firm said it had increased its holding to 20.88%.
Having VCP,  founded by Antony Ball and Sam Sithole of private equity firm Brait, involved in the group could be a game changer for GPI. The Cape-based empowerment group has struggled to get its quick-food operations to work, so having people with a background in turning around troubled business could just be what it needs.
Investors seem to like the idea of VCP increasing its shareholding. GPI’s share price has risen 15% to R3.15 since news broke on Tuesday last week that Adams had reduced his stake.Having VCP as a shareholder is welcome news after the torrid year GPI has had. Adams has come in for sharp criticism of his management by some minority investors, so having a new party involved could placate them.

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