Grand Parade Investments (GPI) has announced it will unbundle its stake in restaurant chain Spur.
In a shareholder statement on Tuesday (10 May), the group which owns 9.28% of the total issued share capital of Spur, said a total of 8,447,731 Spur shares would be unbundled as part of the process.
“The unbundling of the Spurs shares is aligned with GPI’s strategy to unlock value by reducing the discount at which GPI shares trade, relative to the intrinsic net asset value of GPI’s underlying assets.
“Currently, GPI shares trade at a discount in excess of 20%. The unbundling of the Spur Shares will give GPI’s shareholders the opportunity to hold a direct interest in Spur rather than through GPI. On completion of the unbundling, the Spur shares held directly by Shareholders will be valued at the market value thereof as opposed to a discount to market if held through GPI.”
Grand Parade Investments’ share price moved up by 1.91% at 13h10 on news of the unbundling.
The first Spur Drive Thru was opened in Pretoria in June 2021 and has been well received by customers, the corporation said in its annual results published on 23 September. “The group will continue to expand this convenient and lucrative channel to meet customer requirements for their favourite meals through accessible channels,” it said.
The drive-thru, situated in Karenspark in Pretoria, offers meals that are traditionally sold at its restaurants including burgers, chicken wings, ribs and onion rings.
The menu also includes more snack-focused items including in-hand breakfasts and roadhouse-style desserts. Alongside the drive-thru is a traditional Spur restaurant where customers can have a sit-down meal.
Spur also launched its virtual kitchen (VK) brands during the first lockdown in 2020, with these continuing to gain traction and generating turnover for the year equivalent to the group’s smaller brands, it said.
A virtual restaurant or ‘ghost kitchen’ operates from an isolated kitchen space without a storefront, and diners will use online ordering and food delivery apps.