GPI was incorporated to conduct business as an investment holding company with interests in the leisure, hotel and gaming sectors – specifically for the express purpose of partnering with Sun International South Africa (Pty) Ltd (SISA), as its primary black economic empowerment (BEE) partner in the Western Cape, in the award of the exclusive casino licence for the Western Cape Metropole.
The Table Bay Hotel in the Victoria & Alfred Waterfront was opened.
GPI converted to a public company.
SunWest International (Pty) Ltd (SunWest) emerged as the triumphant bidding vehicle and was awarded the exclusive licence for the GrandWest Casino and Entertainment World (GrandWest) in Goodwood, Cape Town.
The public response to the preferential offer was overwhelming and saw previously economically marginalised communities across the Western Cape taking up shares in GPI.
GPI acquired an initial 8.53% stake in SunWest.
GPI increased its economic stake in SunWest from 8.53% to 19.12%.
GPI went on a community drive to raise R28 million from thousands of shareholders throughout the Western Cape. The road shows which started at the Cape Town City Hall (which is now represented in the symbolic logo of GPI) to the various civic halls throughout the Western Cape.
The GPI Special Purpose Vehicle Trust (SPV Trust) and the GPI Broad-Based Black Economic Empowerment Trust established to enhance and sustain the Company’s empowerment status and raise capital to repay debt.
The SPV Trust owned 8.17% directly in GPI and this, together with the units held in the GPI Broad-Based Black Economic Empowerment Trust and the units locked in by black shareholders by agreement amounts to an effective lock in of 28%
GPI increased its stake in SunWest to 26.41%.
GPI listed on the main board of the JSE in the ‘General Financial’ sector. After listing, thousands of the initial shareholders progressed to a new corporate listed environment with an opportunity to participate in the continued growth and development of GPI.
GPI acquired a 30.6% stake in Real Africa Holdings Ltd, giving GPI a share in Carnival City Casino and Entertainment World, Afrisun KZN (Pty) Ltd (Sibaya Casino) and the Boardwalk Casino and Entertainment World and an increased share of SunWest, National Casino Resort Manco (Pty) Ltd (National Manco) and Western Cape Casino Resort Manco (Pty) Ltd (Western Cape Manco).
GPI acquired a 50% economic and minority voting stake in Grand Casino Investments KZN (Pty) Ltd (Grand Casino KZN) which owned a 20% stake in Thuo Gaming KwaZulu-Natal (Pty) Ltd and increased GPI’s exposure to the lucrative Sibaya Casino through a 6% stake in Dolcoast Investments (Pty) Ltd (Dolcoast) and Dolcoast’s 22% stake in Sibaya Casino.
GPI exercised further options during the financial year and increased its stake in SunWest from 26.41% to 29.24%.
GPI now indirectly owns an effective share in Sibaya Casino of 6.3%.
In December 2008, GPI provided R7 million to Grand Casino KZN so that it could exercise its pre-emptive rights through a first round offer. GPI provided an additional R13 million to Grand Casino KZN so that it could exercise the balance of its pre-emptive rights through a second round offer. As a consequence, GPI’s economic stake increased to 75% and its voting rights to 49.99% in Grand Casino KZN.
In November, GPI announced a R170 million deal to give it a controlling stake in Thuo Gaming South Africa (Pty) Ltd (Thuo Gaming), operator of LPM, by taking full ownership of Carentan Investments (Pty) Ltd, a subsidiary of the Australian-based Tatts Group, which owned 90% of Thuo Gaming.
Bought back 27 million GPI shares at an average price of R2.18 per share.
Watershed year from investor to operator.
- Invested R192 million and became a leading Slots operator
- Invested R28 million to increase the Group’s direct stake in SunWest to over 30%
- Invested R4 million to increase the Group’s stake in Worcester Casino (Pty) Ltd (Golden Valley Casino or Worcester Casino) to 44.4% and achieved joint control
- Grew its indirect stake in Sibaya Casino through the increased stake in Dolcoast, which increased from 18.5% to 23%
- Remained dividend-active by matching prior year’s 7.5 cents declaration
- Increased the Group’s net asset base by 8% and the decline in adjusted headline earnings per share was contained to 7%
In 2011, despite the global recession, GPI embarked upon adopting a policy of sustainability and growth. GPI continued to seek opportunities by leveraging its strong financial position whilst maintaining its promise of being a dividend-active Company.
- Reached an agreement to restructure certain common interests with Sun International Ltd (Sun International)
- Increased the dividend by 33% to 10 cents per share
- Increased adjusted HEPS by 15%
- Acquired a LPM route operator licence in Gauteng
- Successfully completed the integration of the Slots business and the restructure of the acquired Slots Group
- Acquired the remaining effective 7.5% interest in Kingdomslots to effect 100% control
In 2012 GPI created a war-chest through the sale of some of its assets to Sun International, which also resulted in a substantial dividend payout to shareholders. The Company focused on growing the business by challenging new frontiers and entrenching a philosophy of investing in people to ensure that the execution of these new ventures is well managed through our in-house capabilities.
- Concluded the agreement to restructure certain common assets with Sun International
- Increased revenue by 33.5%
- Increased Slots GGR by 25.1%
- Net profit after tax increased by 1 209%
- Increased adjusted HEPS by 30.6%
- Generated net cash of R335.9 million
- Paid a special ordinary dividend of 60 cents per share during January 2012 from the proceeds of the Sun International deal
- Declared a final ordinary dividend of 12.5 cents per share and a second special dividend of 7.5 cents per share, totalling 20 cents per share subsequent to year-end
Built an iconic head office in Heerengracht Street by refurbishing an old building and this has now become our landmark.
The recent acquisition of BURGER KING® South Africa spiked GPI’s market capitalisation by R650 million and we successfully launched BURGER KING® on 9 May 2013 in Heerengracht Street Cape Town.
- Group revenue by 13.6%
- Slots GGR by 17.1%
- Adjusted HEPS by 5.9%
- Increase of 20% on final ordinary dividend to 15c per share
- Invested in and opened the first BURGER KING® store in South Africa
- Acquired an additional office building which houses GPI’s Gauteng router operator Grand Gaming Gauteng
- Acquired two additional route operator licences in Mpumalanga and Gauteng
- Opened 18 BURGER KING® stores
- Submitted our National Lottery Bid and was short listed to one of four participants
- Acquired two additional buildings
- Awarded 20.2 million share options to key personnel
- Sale of significant gaming assets
- Acquired remaining 41% in Grand Casino KZN and in so doing became the 100% owners of this entity
2015 - 2016
The next 12 months will see us focus on consolidating our position in the Gaming and Quick Service Restaurants (QSR) arena. The GPI brand has been elevated to a point where there is a lot of interest in us from an investor and business partner point of view, but we are very careful to grow the business at a rate that we are comfortable with and that will benefit all our stakeholders.
With the implementation of our growth plan, our prospects for the next five years are well defined and gives us an opportunity to establish targets driven by Key Performance Indicators (KPIs). We are confident that our existing and newly acquired businesses will drive GPI to new heights.