Today will see the sale of Caesars Gauteng Casino, near Johannesburg, finalised. The Competition Commission and the gambling authorities of South Africa have unconditionally approved the sale by Caesars Entertainment Inc to the hotel and casino group, Peermont Global Ltd (PGL). Prior to its takeover by Harrah’s Entertainment Inc, Caesars has been disposing of various assets in the US in order to comply with local state regulations and is making a strategic withdrawal from South Africa.

Peermont Global is purchasing the Gauteng property in partnership with Marang Gaming Investments, a Black Economic Empowerment (BEE) group. Apart from Caesars the company operates the American Colonial style Graceland Hotel Casino & Country Club in Mpumalanga and the Grand Palm Casino Resort in Gaborone, Botswana. The Caesars Gauteng property has two hotels, the 5-star Emperor and the more functional Senator. It is sited at the World Trade Centre adjacent to the Johannesburg International Airport in Kempton Park.

PGL was formerly Global Resorts SA (Pty) Limited founded by Ernie Joubert when he resigned as Sun International’s Group Marketing Director. In June 2004 the company went public and changed its name to Peermont Global Limited. The purchase of Caesars Entertainment’s 50% stake of Caesars Gauteng will give PGL an effective 83% economic ownership interest. The total value of the transaction is US$145 million. Over a 12-year period Marang Gaming Investments will increase its economic interest to 33.3%.

The Supreme Court of Appeal has confirmed a High Court order to the Gauteng Gambling Board to issue the sixth and final casino licence in the province to Silverstar Development (Pty) Ltd. The judgement has finally brought to an end six years of litigation. The Pretoria High Court had previously set aside the Gambling Board’s decision to refuse the licence. According to the Supreme Court of Appeal, the licence application had been thoroughly investigated by the Gauteng Gambling Board and no objection of any weight remained unanswered. (E-03.31.05)

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