Following an agreement to acquire a controlling stake in Tusk Casino Resorts and Hotels, Peermont Global will hold an effective 70% interest and take over the management of the Tusk casinos. A holding company, Peermont Tusk Holdco, will be set up. The BEE shareholders in Tusk, which includes the staff trust, will be part of the restructuring of the company and retain a minimum of 26% of Holdco’s issued share capital.

Peermont Global recently opted out of making a bid for Singapore’s first casino resort in favour of pursuing further expansion in Africa, stating that its shareholders would be better served by that course of action. With a controlling interest in Tusk, for a figure between US$68.9 million and US$91.2 million, Peermont will acquire four more casinos with a total of 838 slot machines and 35 gaming tables. The company intends to develop the two Tusk properties at present without a permanent casino licence because of a lack of hotel and entertainment facilities.

The Tusk Group had EBITDA earnings of US$7.6 million for the six months to 30 September from a generated revenue of nearly US$21.5 million. The company’s casinos are in Mafeking/Mmabatho, Taung, Venda and Empangeni. Peermont owns the Emperors Palace complex in Johannesburg, Graceland in Mpumalanga and The Grand Palm in Gabarone, Botswana. (E-12.22.05)

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