The parent company of Burger King SA, Grand Parade Investments (GPL) saw its share price drop 11% today following the announcement of a proposed sale to ECP Africa, a private equity firm, which would have reduced its BEE ownership from 68% to 0%.
In a statement released by the Competition Commission today, both parties put forth several conditions to the merger that would be achieved by 2026 to help smooth over the blockade.
These included increasing the amount of Burger King stores in the country to 150, hiring more staff, salary increases, and increase its procurement from B-BBEE suppliers.
The parties also said within 24 months of the implementation date “the merged entity shall allocate an effective interest of 5% of the shares in the merged entity for an appropriate B-BBEE ownership structure.”
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