Grand Parade Investments sells its interest in Burger King

South Africa's Grand Parade Investments (GPI) Ltd will sell its 95.36 percent stake in Burger King South Africa and all of Grand Foods Meat Plant to ECP Africa Fund for R670 million.

Can this be called failure?

The Money Show interviews Mohsin Tajbhai, Chief Executive Officer (CEO) of Grand Parade Investments.

I would not say that we failed. Over the last couple of years we've succeed in unlocking value in this business. We're not getting back the capital that we put in but we're getting close. We put in 750 million - the offer we got in the table is 670 million. We have overcapitalised over the last couple of years but we've managed to make changes that improved the profitability of the business and that has led to in my opinion a decent valuation of the business.

Mohsin Tajbhai, Chief Executive Officer (CEO) - Grand Parade Investments.

Looking at where GPI was trading; looking at the discount - it's an extremely value unlock for our sharholders. We were trading at a 40 per cent discount over the last two years. We've narrowed that discount to between 20 and 30 per cent. We'll unlock further value for our shareholders I would not say it's a failed strategy. Yes overall, if you look at where we've come from - but you need to look at where we are at the moment.

Mohsin Tajbhai, Chief Executive Officer (CEO) - Grand Parade Investments.

ICP is probably one of the biggest private equity firms on the continent; they're Kenya-based. They have vast experience and bring a wealth of knowledge - it is a good firm to accelerate the growth of Burger King in South Africa.

Mohsin Tajbhai, Chief Executive Officer (CEO) - Grand Parade Investments.
FILE: The first Burger King in South Africa opened its doors in Cape Town on 9 May 2013. Picture: Rafiq Wagiet/EWN

Listen to the full interview below.

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