GRAND PARADE INVESTMENTS LIMITED

(Incorporated in the Republic of South Africa) (Registration Number: 1997/003548/06) Share code: GPL

ISIN: ZAE000119814

(“GPI” or the “Company”)

COMPETITION COMMISSION DECISION

Shareholders are referred to the Company’s various announcements regarding the proposed transaction in which the Company’s wholly-owned subsidiaries, Grand Foods Investments 1 Proprietary Limited and Grand Foods Proprietary Limited, will sell all of the shares they hold in Burger King South Africa (RF) Proprietary Limited and Grand Foods Meat Plant Proprietary Limited, respectively, (“Disposal” or “Proposed Transaction”) to an affiliate of ECP Africa Fund IV LLC and ECP Africa Fund IV A LLC (“ECP”).

ECP is one of the largest and oldest Africa-focused private equity firms. Its investors are a broad group of public and private investors, including the African Development Bank (AfDB), the development finance institutions of the United States (DFC), France (Proparco) and Germany (DEG), and various South African and African pension funds.

The Company distributed a circular to shareholders on 12 March 2021, detailing the Disposal (“Circular”) and 99% of shareholders approved the Disposal at the general meeting held on Thursday, 15 April 2021.

As stated in the Circular, the Disposal is subject to the approval of the Competition Authorities (namely the Competition Commission (“Commission”)), Competition Tribunal or Competition Appeal Court, as the case may be) on conditions acceptable to ECP.

On 1 June 2021, the Commission advised the parties that, despite finding that the Proposed Transaction is unlikely to have any impact on competition, it has prohibited the Proposed Transaction on public interest grounds in terms of the Competition Act (“Act”).

In the reasoning provided, the Commission confirmed that it considered the effect of the Proposed Transaction on public interest and found that the merger will have no negative effect on employment. However, the Commission stated that it is of the view that the merger has a substantial negative effect on the promotion of a greater spread of ownership as contemplated in section 12A(3)(e) of the Act, given that inter alia the target firm is controlled by GPI, an empowerment entity with 68.56% of its shareholdings held by Historically Disadvantaged Persons (“HDP”), and that the end result is that, after the implementation of the Proposed Transaction, both the acquiring and the target firms will have no ownership by HDPs and workers.

In order to address the public interest concerns raised by the Commission, the parties had proposed the following conditions to the merger:

"By the end of 2026:

the acquiring firms shall procure the investment of no less than R500 million in aggregate capital expenditure, which will be utilised towards the establishment of new Burger King® stores in South Africa;

the merged entity will increase the number of Burger King® outlets in South Africa to at least 150;