Since 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.