Grand Parade (GPL) – Selling a valued Asset

Given the high capex requirements of opening drive-through restaurants, we believe reviewing the business at the operating profit level rather than EBITDA level to be more appropriate. We price GPL’s remaining stake in Sun Slots by reviewing the last disclosed iNAV and carrying value and find the amount offered by Sun International for this stake to be lower than those valuations. Sun Slots operates in a segment that is showing high growth and we believe shareholders should vote against the sale at the current offer price.