Kersaf boosts its interest in Sisa.

Posted On Monday, 12 May 2003 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)


Leisure and entertainment group Kersaf Investments, which holds stakes in Sun International SA (Sisa), City Lodge Hotels and Ster Century Europe and Middle East, has raised its effective stake in Sisa to 62,2% from 43,6% at a cost of R547m in a further step towards simplifying its structure and enhancing its underlying value.


Property-Housing-ResidentialSince Kersaf already has rights over 50% of votes in Sisa, the Securities Regulation Panel has ruled that it need not make a general offer to Sisa minority shareholders.

Kersaf said on Friday it was buying the shares at 250c a share from the North West Development Corporation (NWDC), now under judicial management. The NWDC is Kersaf's partner in a holding structure called Sisa Holdings in which Kersaf holds 50,1% and NWDC the remaining 49,9%. Sisa Holdings in turn holds 37,3% of Sisa shares.

The NWDC was required to sell its stake in Sisa Holdings by Friday, May 9 in terms of legislation controlling government entities' ability to invest in certain industries.

The transaction, which Kersaf will fund from existing resources, depends on the approval of the regulatory authorities, including gaming boards and the competition commission.

Analysts have previously questioned the rationale for retaining two entry points into Sisa, namely Sisa itself and Kersaf. Kersaf chairman Buddy Hawton said on Friday that Kersaf had reiterated for some time that it was looking at restructuring with a view to enhancing shareholder value. This transaction positions Kersaf for further opportunities in this area, but it was not saying any more at this stage.

Kersaf's announcement referred to an undertaking to ensure an appropriate level of empowerment within the group and particularly within the Sisa structures.

Hawton said there had been significant empowerment in the group as its gaming operations had both national and regional empowerment partners. Sisa recently announced a R140m empowerment scheme that grants benefits to employees of the group, of which a significant portion were in the North West province at the group's Sun City and Carousel/Maroela resorts.

The group would be looking at further empowerment, ideally linked to operations in the northwest region, but empowerment had to be linked to sustainability.

Last modified on Tuesday, 29 April 2014 17:19

Most Popular

Should you rent or buy your business premises?

Jun 23, 2022
Malusi Mthuli_FNB
This is a question that most business owners will face at some point in their journey.…

April 2022 Hotel Accommodation Income Statistics continue to show a very weak picture compared to pre-lockdown times.

Jun 23, 2022
Hotels Monthly Income 2022
The StatsSA release of April 2022 preliminary monthly tourism statistics show the Hotel…

South Africa’s inflation exceptionalism: can it last?

Jun 23, 2022
Carmen Nel
South Africa is often seen as a high-beta play, be it regarding financial market risk…

Hyprop continues to reduce debt and reposition its portfolios in SA and EE

Jun 30, 2022
Skopje City Mall Playground
Hyprop, which manages dominant retail centres in mixed-use precincts in key economic…

Vaal Mall rolls up its sleeves for pothole repairs

Jun 30, 2022
Vaal Mall crew busy repairing the various potholes making easier access to the Centre.
Vaal Mall is showing their commitment towards their community by stepping up to repair…

Please publish modules in offcanvas position.