Grand Parade Investments (GPI, GPL) said on Monday that the conditions of its restructure, announced in May, had been fulfilled, with the deal becoming unconditional.

The group has reduced its shareholding in both GrandWest Casino and Golden Valley Casino (Worcester) to 25.1%, and in terms of an offer by Sun International South Africa (SUI) to RAH shareholders, GPI would dispose of its 30.6% interest in RAH at an offer price of 422 cents per share.

GPI would receive R801.3 million.

"The restructure was subject to a number of regulatory approvals which took some time to achieve. We are very pleased that all the hard work has paid off and that we can now focus our attention on GPI's exciting future with greater certainty," said GPI chairman Hassen Adams.

"The conclusion of the transaction is a significant moment for empowerment in South Africa. Through this transaction GPI is realising value for some of its assets which will enable it to pay a substantial dividend to its shareholders, the majority of which are broad based black South Africans. Once the deal has been implemented we intend making a special dividend payment of 60 cents per share, which is an increase of 10 cents on the amount previously suggested. The annual dividend of 10 cents due to be paid on 12 December 2011 remains unaltered."

GPI would also be released from all empowerment lock-in obligations which would result in the unbundling of the GPI SPV Trust and BBBEE Trust, following which unit holders would receive GPI shares that they could trade freely.

Richard Hoption, a member of GPI's board, said: "The process of unbundling the empowerment trusts is well underway. The trusts have played a major role in GPI's success and it will be extremely rewarding to issue shareholders with directly held GPI shares."

On GPI's intentions regarding the remaining cash received from Sun International, Adams said: "We intend using a portion of the proceeds to reduce debt, but we are most excited about the attractive opportunities we are being presented with as a result of our strong balance sheet, black ownership credentials and the cash resources. We are taking a great deal of care in investigating these opportunities and will be expanding and developing our LPM business throughout South Africa and across the borders, focussing on technology betting and other gaming initiatives. We will also be venturing beyond the gaming footprint and will provide more details in the forthcoming months."

Following implementation of the transaction, GPI's effective shareholding in SunWest would reduce to 25.1%, its share in Worcester would be 25.1% and would have no effective holding of RAH.

Source: I-Net Bridge