- September 9, 2008
- Posted by: admin
- Category: SENS Announcements
Final approval of the transaction between HCI and Fabvest Investment Holdings Limited (“Fabvest”) regarding the acquisition by HCI of the remaining 50% of the shares held by Fabvest in Fabcos Investment Holding Company Limited (“the Fabvest transaction”)
Shareholders of HCI are referred to previous announcements published by HCI on the Securities Exchange News Service of the JSE Limited and in the press (the last such announcement was on 15 May 2007) regarding the Fabvest transaction in terms of which HCI effectively acquired an indirect financial interest of 9.69%
in the casino licensee, Tsogo Sun Casinos (Pty) Ltd (“TSC”) (a subsidiary of Tsogo Investment Holding Company (Pty) Limited).
Shareholders were advised in such announcements that the Fabvest transaction had become unconditional and was implemented in December 2006.
Shareholders were also advised that with the exception of the Mpumalanga Gambling Board (“MGB”), the Fabvest transaction had been approved by all of the other relevant Gambling Boards (namely, the KwaZulu-Natal Gambling Board, the Eastern Cape Gambling and Betting Board and the Gauteng Gambling Board). The MGB refused to approve the Fabvest transaction, declared it to be of no force and effect and ordered HCI to dispose of the interest acquired in TSC.
HCI did not accept the MGB`s ruling and filed an application in the High Court of South Africa (Transvaal Provincial Division) (“Court”) for the ruling of the MGB to be reviewed and set aside.
2. Outcome of the litigation process
HCI is pleased to announce that the parties have reached a settlement in relation to the aforesaid litigation (“settlement agreement”), and that on 9 September 2008, the Court made the settlement agreement an Order of Court.
In terms of the settlement agreement, the MGB consented to:
* the Court reviewing and setting aside the decision of the MGB to refuse HCI`s application for approval as well other ancillary decisions by the MGB impacting on the Fabvest transaction; and
* the substitution of such decision by an order granting HCI approval, in terms of section 36 of the Mpumalanga Gaming Act, 5 of 1995, to procure an indirect financial interest in the business of TSC in accordance with HCI`s application to the MGB dated 5 April 2006 (as amended).
It was further agreed by the parties that HCI would, via its corporate social investment foundation, the HCI Foundation, on an ex gratia basis, donate an amount of R5million to promote the social, educational and community development of historically disadvantaged South Africans resident in the province of Mpumalanga.
In light of the above Court Order and the settlement reached between the parties, the Fabvest transaction is no longer subject to any further regulatory
9 September 2008