TUESDAY, 10.00AM:
MORIBO Investment Holdings, a wholly-owned subsidiary of the Thebe Investment Corporation, has made a bold leap into the gaming industry by buying five of Sun International’s casinos in a deal worth R95-million.
Thebe chairman Vusi Khanyile and Sun International SA MD Peter Bacon said on Monday a new joint venture company will acquire the Mmabatho Sun, the Molopo Sun, the Tsaung Sun, the Venda Sun and the Amatola Sun. Sun International executives Jeremy Franklin and John Barret will join Thabo Mokoena of Moribo to jointly manage the five operations.
The transaction is conditional on provincial gaming authorities transferring casino licences to the new Moribo joint venture company.
“As a country dedicated to the transformation of all sectors of the South African economy, we see this venture as an important step in the creation of meaningful black participation in the leisure industry,” Khanyile said. “The leisure industry, as the fastest growing sector in the world, offers significant opportunities for real empowerment and employment.”
Bacon said the deal follows other initiatives undertaken by Sun International in a number of provinces, where provincial empowerment companies hold 51% of new structures.
The sale will reduce Sun International’s total number of casinos in South Africa to 10. The National Gambling Act gives Sun International until May 1999 to reduce the number of its casinos.