The Competition Tribunal has approved the proposed disposal of Grand Parade Investments’ shares in Burger King South Africa and Grand Foods Meat Plant to an affiliate of ECP Africa Fund.
Subject to certain merger conditions, Burger King South Africa will be required to, within five years of the effective date of the disposal, procure the investment of no less than R500 million in aggregate capital expenditure (capex), establish at least 60 new Burger King outlets in South Africa, increase the total number of its employees by at least 1 250 historically disadvantaged persons, increase the total value of all payroll and employee benefits in respect of the 1 250 employees by no less than R122 million and, improve its rating for the Enterprise and Supplier Development element under its BBBEE scorecard.
Additional merger conditions require Burger King South Africa to establish an employee share ownership program for an effective 5% interest in the entity, ECP Africa Fund shall dispose of Grand Foods Meat Plant and Burger King South Africa shall conclude a supply agreement with Grand Foods Meat Plant and/or the purchaser.
ECP Africa Fund’s acceptance of the merger conditions is a condition to the proposed transaction. The date for fulfilment or waiver of the conditions precedent has been extended to the 4th of October 2021.