Analysis of Acquisition and Mergers

Executive summary

Aim of investments

Objective of this report

Company Background

Gooderson Leisure Corporation (GDN)

Gooderson Leisure Corporation, hereinafter referred to as GDN, was established in 1957. The company entered into a partnership in the timeshare industry in 1981, which allowed its management team to gain extensive knowledge of timeshare development, sales and management.

GDN manages and provides accommodation, food and beverage and restaurant services to leisure, international and conference tourists in the Kwazulu Natal, Limpopo, and Gauteng provinces.

Company highlights:

• Revenue up 12% from 2008.

• Net asset value up 32% from 2008.

Grande parade Investments (GPL)

Grand Parade Investments is a Western Cape-based black owned and controlled (as defined in the Codes of Good Practice) holding company listed on the JSE Limited, having investments in the South African gaming and leisure industry. Since its establishment in 1997, the company has positioned itself as a formidable player in this industry, keenly focused on cash generative gaming assets capable of delivering long-term sustainable returns to shareholders.

Through participation and leadership, GPI has consistently sought to ensure that its investments are optimally leveraged for the benefit of all stakeholders and the broader community. As a Broad-based Black Economic Empowerment enterprise with a substantial shareholder base comprising a broad spectrum of the population of the Western Cape, one of GPI's primary objectives was to provide a vehicle whereby Historically Disadvantaged Persons were able to participate in the country's lucrative gaming industry. The black empowered shareholder base is in excess of 6 000 direct members and up to a further 15 000 indirect members. 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 has consistently been driven by two passions - to be a profitable and successful enterprise in the gaming and leisure industry, while at the same time uplifting