GAMBLING: GPI's Gamble On GrandWest
Recent Western Cape Business News
Grand Parade Investment’s shareholders Wednesday approved a number of special resolutions, thereby clearing the way for the restructuring of GPI’s relationship with Sun International. The resolutions were passed with an almost unanimous majority of more than 99%, with more than 400 shareholders in attendance at the special general meeting at GrandWest.
In terms of the restructure, GPI will receive a combined consideration of R717.8 million for the sale of shares in SunWest (GrandWest and The Table Bay Hotel in Cape Town), the Golden Valley Casino in Worcester, and Real Africa Holdings, while still retaining a 25.1% stake in both SunWest and the Worcester casino. A further consideration of R67.4 million will be received from the cancellation of existing Sun International management contracts, and the implementation of new long-term operating agreements with Sun International to manage GrandWest, Golden Valley Casino and the Table Bay Hotel.
GPI Executive Chairman Hassen Adams told the meeting the planned restructure holds several benefits for GPI and its future plans.
“The restructure will release GPI from all empowerment lock-in obligations, which will result in the unbundling of the GPI Special Purpose Vehicle Trust and the GPI Broad-based Black Economic Empowerment Trust,” Adams said. “Unit holders will receive GPI shares which they can trade freely.
“In addition, the restructure provides GPI with the opportunity to realise a fair value for its investments in RAH and the portions of SunWest and Worcester that are being sold. These funds will be used to reduce debt, and to create a substantial war-chest for GPI to further its own gaming interests independently, particularly with regard to its Limited Pay-out Machines (LPM) operations.”
Adams also announced that a special once-off dividend of 50 cents per share has been proposed once all the necessary approvals for the restructure were in place.
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