Johnnic Holdings and Hosken Consolidated Investments (HCI) are still fighting for control of Tsogo Investment Holdings (TIH), the holding company of the lucrative Tsogo Sun. Cash rich Tsogo Sun operates 5 casinos and 82 hotels in South Africa, and both Johnnic and HCI want a piece of the action. Accusations of dirty tricks and underhand dealings abound, and the struggle is continuing in the South African courts on a number of fronts.

HCI, now with 51% of TIH, claims effective control but a 25% shareholder, Nafhold, is claiming that the HCI acquisition of Fabvest’s 19% stake in TIH broke Companies Act regulations. HCI acquired the 19% last December but the Gaming Board has yet to approve the transaction and the company is accused of having a poor Black Economic Empowerment (BEE) status that would weaken TIH gaming credentials. At present it seems that HCI tactics are giving them a winning streak as the TIH company secretary has moved to HCI premises and bank account signatories have been changed.

Legal challenges are being mounted in the continuing battle. The glittering prize that is being fought over includes the Southern Sun hotel chain but it is the five key gaming licences currently held by Tsogo Sun Gaming that are the main attraction. Last December the Suncoast Casino & Entertainment World in Durban drew nearly one million customers to the Art Deco complex, making it one of South Africa’s busiest casino resorts. Montecasino in Fourways, Johannesburg, is a Tuscan-themed multi-million dollar gaming, retail and leisure complex that is the Tsogo Sun flagship operation. The company also runs three other casino resorts, Hemingways in East London and two in Mpumalanga - Emnotweni in Nelspruitt and The Ridge at Witbank.

The twists and turns in the saga may seem tortuous, but the jackpot is worth pursuing. Tsogo Sun Gaming (tsogo means ‘awakening’ in the Sotho language) is estimated to have an annual cash flow of nearly US$120 million and is South Africa’s second largest casino operator, holding some 25% of the growing gaming market. (E-07.26.05)

© Copyright 2005 CasinoCompendium



>>> return to archives
>>> return to frontpage