Grand Parade to separate Spur actions

Grand Parade Investments (GPI) has announced that it will dissolve its stake in the Spur restaurant chain.

In a shareholder statement on Tuesday (May 10), the group that owns 9.28% of Spur’s total issued share capital, said a total of 8,447,731 Spur shares would be segregated as part of the process.

“The unbundling of Spurs shares is in line with GPI’s strategy of unlocking value by reducing the discount at which GPI shares are traded, relative to the intrinsic net asset value of GPI’s underlying assets.

“Currently, GPI shares are trading at a discount of more than 20%. The unbundling of Spur Shares will give GPI shareholders the opportunity to have a direct interest in Spur rather than through GPI. At the end of the unbundling, the Spur shares held directly by the Shareholders will be valued at their market value rather than at a market discount if held through GPI.

Grand Parade Investments’ share price rose 1.91% at 1:10 pm on news of unbundling.

The first Spur Drive Thru opened in Pretoria in June 2021 and was well received by customers, the company said in its annual results released on September 23. “The group will continue to expand this convenient and profitable channel to meet customer needs for their favorite meals through accessible channels,” he said.

The drive-thru, located at Karenspark in Pretoria, offers meals traditionally sold in its restaurants including burgers, chicken wings, ribs and onion rings.

The menu also includes more snack-focused items, including on-hand breakfasts and roadhouse-style desserts. Next to the drive-thru is a traditional Spur restaurant where patrons can have a seated meal.

Spur also launched its virtual kitchen (VK) brands during the first block in 2020, with these continuing to gain traction and generate revenue for the year equivalent to the smaller brands in the group, he said.

A virtual restaurant or “ghost kitchen” operates from an isolated kitchen space without a display case and diners will use online ordering and food delivery apps.

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