Johannesburg-listed hotel and leisure firm, Tsogo Holdings, had acquired 40 percent equity interest in hotel firm, SunWest International and another 40 percent in Worcester Casino for R2.1 billion, it emerged on Tuesday.
The firm said the acquisition of this equity interest would be settled in cash from Tsogo’s existing cash resources.
Tsogo said it bought these stakes because it saw this deal as an appealing investment prospect, providing it with an interest in value-add casino assets in a space where Tsogo has restricted exposure.
It added that the proposed deal was in keeping with its growth strategy of investing capital in good prospects in the hotel and gaming industry in South Africa.
These equity interests are being acquired from another gaming, leisure and hotel firm, Sun International (South Africa), a wholly-owned subsidiary of Sun International and Afrisun Leisure, another subsidiary of Sun International (South Africa), Tsogo said.
SunWest conducts the casino, leisure and entertainment business in the form of the Cape Town-based GrandWest Casino and Entertainment World.
Worcester is also a subsidiary of Sun International (South Africa). It conducts the casino, hotel, leisure and entertainment business at the Golden Valley Casino at Breede River Valley in Worcester.
Source: Venture Africa – Mzwandile Jacks