- December 22, 2008
- Posted by: admin
- Category: SENS Announcements
Acquisition of the Caledon Casino, Hotel and Spa and Century Casino Newcastle by HCI`s 38% held subsidiary, Tsogo Sun Gaming (Pty) Ltd (“transaction”)
Shareholders of HCI are advised that Tsogo Sun Gaming (Pty) Limited, a wholly owned subsidiary of Tsogo Sun Holdings (Pty) Limited (“Tsogo Sun” or “the Group”), in which HCI has an effective 38% interest, has reached agreements with Century Resorts Limited and Winlen Casino Operators (Pty) Limited, for the acquisition of two South African operations, namely 100% of the Caledon Casino, Hotel, Spa in the Western Cape and 100% of the Century Casino Newcastle in KwaZulu-Natal, for a total purchase consideration of R490 million including the assumption of existing debt in the operations. The transactions will be funded from existing Tsogo Sun Group resources and are subject to conditions precedent including approval of the various Gaming and Competition authorities and the South African Reserve Bank.
The inclusion of these operations in the Tsogo Sun portfolio will provide additional geographic diversity and representation in casino and hotel operations for the Group in markets not currently serviced by the existing Tsogo Sun Gaming and Southern Sun Hotel businesses. On conclusion of the transaction Tsogo Sun will own and operate seven casinos directly and have a financial interest in an additional seven casino operations via the recently announced acquisition of a 20% stake in Gold Reef Resorts, and a portfolio of 84 hotels in 8 countries, with an additional three hotels under construction.
Further announcements will be made in due course on the progress of the regulatory approvals.