Grand Parade (GPL) – No Value unlock during Lockdown

We evaluate GPL’s proposed deal to sell Burger King and its Meat Plant to ECP Africa. We estimate a lower FY20 EBITDA than that GPL management forecasted to determine the selling price of the food businesses. Furthermore, SA’s five-week lockdown is negatively impacting GPL’s FY20 food performance. In our view, the lockdown will weaken the prospects of the deal being approved by shareholders.