On May 16 the Broad Based Black Economic Empowerment enterprise Grand Parade Investments Limited was given approval to list on the main board of the Johannesburg Stock Exchange on 6 June 2008. GPI was established in 1997 and two years later was the empowerment partner in SunWest, now owning 26.41% of that company which owns South Africa’s most successful casino GrandWest Casino & Entertainment World, Table Bay Hotel and a stake in Cape Town International Convention Centre.

GPI also holds substantial stakes in the Golden Valley Casino in Worcester and limited payout machine operations in the Western Cape and KwaZulu-Natal. It has recently acquired a 23% interest in Real Africa Holdings so now has additional stakes in the Boardwalk Casino & Entertainment World in Port Elizabeth, the Sibaya Casino & Entertainment Kingdom north of Durban and the Carnival City Casino & Entertainment World in the Brakpan area.

On gaining JSE approval GPI Chairman Hassen Adams commented, “The JSE’s approval of GPI’s listing application is the culmination of almost two years of work. We are elated to have cleared this final hurdle, which will open up new vistas for GPI and ultimately create further wealth for its shareholders, many of whom have been fiercely loyal to GPI for a decade now.”

The listing will be a major step forward in GPI’s plans to become a major player in the tourism, leisure and gaming industry in both South Africa and the rest of the African continent. In its 138-page pre-listing statement issued last week, the company states that since its establishment in 1997 it has positioned itself in the gaming and leisure industry as a formidable player, keenly focused on cash generative gaming assets capable of delivering long-term sustainable returns to shareholders.

In an interview with Summit TV this week Hassen Adams described Sun International Management as doing a ‘fabulous job’ operating the casinos. He pointed out that these skills had led to GPI growing from a R28 million six years ago to well over R1 billion now. On being asked why people should invest in GPI, Adams replied, “We don’t carry the overhead in terms of the management costs and we don’t take the risk in terms of upfront research and development work for new casinos - we go for new casinos at an investment level when all the work is done already.” (E-05.30.08)

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