In 2003 Tsogo Investments took control of the largest hotel and entertainment group in South Africa. Tsogo Sun Group (51% Tsogo Investment Holding Company; 49% SABMiller) owns 100% of Tsogo Sun Gaming and Southern Sun hotels, employing over 16,000 people directly and indirectly. Later this month Tsogo Sun will acquire a majority shareholding in Century Casinos Africa for R357 million (US$44.1 million).

Tsogo Sun Gaming consists of five casino and entertainment complexes strategically located throughout South Africa. They include Montecasino in Fourways, Suncoast Casino & Entertainment World in Durban, Hemingways Casino in East London, The Ridge Casino & Entertainment Resort in Witbank, and Emnotweni Casino in Nelspruit.

On Monday Century Casinos confirmed that the sale of its South African unit will be completed at the end of the month, adding the Caledon Hotel, Spa & Casino near Cape Town, as well as 60% of Century Casino Newcastle, to Tsogo’s properties. Some US$13 million of the purchase price will be paid when final regulatory approval from the KwaZulu-Natal Gambling Board has been received.

The five current casino properties have a total 4,057 slot machines, ranging from 1c to R100, and 155 gaming tables. Over 21 million people visit the properties each year. Tsogo Sun Gaming is the largest Black Economic Empowerment (BEE) group in South Africa’s entertainment and gaming industry. The Caledon purchase will give Tsogo entry into the lucrative Western Cape gaming market.

A recent press statement on the acquisition of the Caledon and Newcastle casinos commented, “The inclusion of these operations in the Tsogo Sun portfolio will provide additional geographic diversity and representation in casino and hotel operations for the group in markets not currently serviced by the existing Tsogo Sun Gaming and Southern Sun Hotel businesses.” (E-06.17.09)

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