Fresh from taking over Kenilworth Racing, business tycoon Gregory Bortz is a step closer to acquiring JSE-listed Grand Parade Investments (GPL), in a move that might see the company delist from the bourse and go private.
Bortz’s private equity company GMB Investment (GMB) in October showed its intention when it bought a 27.8% stake in GPI. Bortz, who owns several racehorses, has now moved to acquire GPL in its entirety.
In a market update, GPL said GMB had notified it that it will increase its stake to 35%, a move that triggered a mandatory offer to the holders of the remaining securities in the company.
“GPL sees the mandatory offer as being aligned with GPL’s stated strategy to unlock value for all GPL shareholders, whilst still allowing GPL shareholders the choice to remain GPL shareholders or to realise their investment in GPL at the mandatory offer consideration,” the company said.
“The mandatory offer consideration represents a premium of 0.91% to the share price of R3.30 as at 8 November 2022, being the business day prior to the publication of this firm intention announcement.”
The ball is now in each shareholders’ court on whether they elect whether or not to dispose of all their mandatory offer shares.
GPI is valued at about R1.5-billion on the JSE. Earlier in 2022, GPI unbundled its stake in restaurant chain Spur and sold off Burger King South Africa, leaving it with mainly gaming assets.
GPI’s remaining assets consist of minority investments in SunWest International, the Golden Valley Casino and SunSlots, a minority investment in Infiniti Gaming Africa, and two investment properties.
Bortz, who has spent most of his investment banking career in the US before returning to South Africa a few years ago, has been prowling for a deal in recent months.
In July, GMB and leading SA sportsbook operator Hollywoodbets joined forces in a R330- million deal that effectively saved Kenilworth Racing from financial collapse.
The complex deal saw Bortz installed as executive chairman of Kenilworth Racing, which manages racing in the Western Cape, where he resides.
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