GRAND PARADE INVESTMENTS LIMITED - Acquisition By GPI Of Additional Shares In Spur Corporation Limited

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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