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Acquisition By GPI Of Additional Shares In Spur Corporation Limited
GRAND PARADE INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1997/003548/06)
Share code: GPL
ISIN: ZAE000119814
(“GPI”)
ACQUISITION BY GPI OF ADDITIONAL SHARES IN SPUR CORPORATION LIMITED
1. Introduction
Shareholders are hereby advised that GPI, through a wholly owned
subsidiary, has acquired 3,099,176 ordinary shares in Spur
Corporation Limited (“Spur”) for a purchase consideration of
R32.50 per share, through a trade with an unknown counterparty
(“Trade”), with effect from 8 May 2017.
In addition to the Trade, GPI has acquired an additional 5,018,555
ordinary shares in Spur during the period commencing on
September 2016 until the date of this announcement (“Additional
Purchases”). The Additional Purchases were a combination of direct
purchases and acquisitions on market through the order book.
Accordingly, GPI, through its wholly owned subsidiary, now holds
approximately 17.48% of the issued ordinary share capital of Spur.
2. Description of the business carried on by Spur
Spur is a leading multi-brand restaurant franchisor,
headquartered in Cape Town, and listed in the travel and leisure
sector of the JSE Limited (“JSE”). Spur franchises five table
service sit down restaurant brands: Spur Steak Ranches, Panarottis
Pizza Pasta, John Dory’s Fish Grill Sushi, The Hussar Grill
Steakhouse and Roco Mama’s. Spur is also the franchisor of Captain
DoRego’s.
Spur also manufactures, bottles and distributes certain of the
sauces used in group restaurants. In addition, the group supports
franchisees by managing the procurement function between
suppliers, the group’s outsourced logistics service provider and
its franchisees.
3. Rationale for the acquisitions
The acquisitions represented an opportunity for GPI to increase
its interest in Spur. The acquisitions were in-line with GPI’s
strategy to grow and diversify its investment portfolio beyond
the gaming sector, focussing on businesses that meet management’s
target IRR and other strategic objectives.
4. Financial effects
The value of the net assets that are the subject of the Trade is
R100,723,220 and the Additional Purchases is R164,849,842.
GPI’s shareholding in Spur, including the shares acquired in terms
of the Trade and the Additional Purchases, are held as assets
available for sale. Accordingly, such assets are fair valued and
therefore no profits are attributable to same.
5. Categorization
The Trade is categorized as a category 2 acquisition in terms of
the JSE Listings Requirements.
The Additional Purchases are not categorized as they were acquired
from various parties over a period of time, but have been
disclosed for the sake of completeness.
Cape Town
19 May 2017
Sponsor
PSG Capital Proprietary Limited
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