Burger King South Africa sale gets green light

© Pisit Khambubpha – 123RF

The Competition Commission initially recommended to the Competition Tribunal that it ban the proposed acquisition. As a result, BKSA, Grand Foods Meat Plant and ECP Africa Fund submitted to the Tribunal a request for review and approval of the proposed transaction, subject to revised terms proposed by the parties.

The court approved the transaction on September 17, 2021. This means that ECP, a US-based private equity fund focused on investing in Africa, will acquire Burger King South Africa and Grand Foods Meat Plant – which primarily supplies to Burger King hamburger patties – from Grand Parade.

Conditions to be fulfilled within 5 years

The transaction is subject to the following conditions, which must be fulfilled within 5 years.
Burger King South Africa must:

• Obtain investment of at least R500 million in overall capital expenditure;

• Establish at least 60 new Burger King outlets in South Africa (bringing the total number of Burger King outlets in South Africa to at least 150);

• Increase the number of permanent BKSA employees in South Africa by at least 1,250 historically disadvantaged people

• Increase the total value of all salaries and benefits of the above mentioned 1,250 BKSA employees by at least R 120 million; and

• Improve its rating for the Business and Supplier Development element in its B-BBEE dashboard.

Elimination of the Grand Foods meat plant

Additional merger conditions require Burger King to establish an employee share ownership plan for an effective 5% stake in BKSA.

ECP Africa Fund must also have Grand Foods Meat Plant; and BKSA must enter into a supply agreement with Grand Foods Meat Plant and / or the purchaser of Grand Foods Meat Plant.

Source link

About Abraham Vernon

Check Also

Netflix employee who criticized Dave Chapelle is among 3 suspended

Netflix recently suspended three employees, including a transgender employee who posted a Twitter thread last …

Leave a Reply

Your email address will not be published. Required fields are marked *