Horse racing enthusiast and private equity investor Greg Bortz now owns 53.65% of Grand Parade Investments (GPI), which was started as an empowerment gaming company and BEE partner to Sun International.
Bortz said the company is now a “pure play gaming asset” — which owns 30% of Sun Slots — a firm with limited payout gaming machines, a 15.1% interest in gaming and leisure group SunWest, which owns GrandWest Casino, a 15.1% interest in Golden Valley Casino in Worcester and two commercial properties.
Bortz owns the stake through his US registered family trust GMB.
Once a shareholder owns 35% or more of a firm it must make a mandatory offer to buy the entire company in terms of the Companies Act.
Bortz, who grew up in Durban, and who made his money in the US, began snapping up shares in GPI last year and when his stake exceeded the threshold in November he made the offer.
Bortz was given the go-ahead by the Competition Commission for the buyout in the middle of March.
Independent expert KPMG Services found that the offer price of R3.33 a share offer was fair to shareholders.
While Bortz had just 49.53% last week, most other shareholders held on to their stake.
Sun International owns about 25% of GPI and has previously expressed interest in buying out its 30% stake in Sun Slots.
GPI’s shares are now trading at a 27% premium to net asset value.
Bortz said with a free float of about 22% — referring to shares traded on the open market — he has no intention of delisting the firm.
Under CEO Mohsin Tajbhai, who stepped down last week but will only leave next month, GPI successfully sold off its food businesses, which included Burger King and an almost 10% stake in Spur, in 2021. At the same time it closed unprofitable Dunkin-Donuts and Baskin-Robbins.
The share price has risen from R1.80 in 2018 when Tajbhai joined as a director.
Last week, Alexander Abercrombie resigned as a non-executive director and chair of the board with effect from April 7, after being appointed as an executive director in 1997 and as a non-executive director in 2015.
Two other directors resigned towards the end of March.
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