Hotels, gambling and property investment company Johnnic Holdings could distribute about R500m of cash to its shareholders if it did not find any "value-enhancing" transactions by the end of September, the group said yesterday.

Johnnic has been seeking investments in the hotel and gambling sector. It holds an effective 28,6% in the Suncoast Casino, 4,85% in Tsogo Sun with the acquisition of another 4,85% subject to regulatory approvals, 100% of Gallagher Estates and R1,5bn in cash.

Slightly more than R1bn of the company's cash is committed to a R300m corporate guarantee, a R192m casino equity guarantee, R284m in tax due on its unbundling, R148m to pay for the other 4,85% stake in Tsogo Sun, and R114m for other liabilities.

The group is negotiating with Nafhold to acquire another 12,75% interest in Tsogo Sun.

In the past few months Hosken Consolidated Investments (HCI) and Gold Reef Casino Resorts have each taken large stakes in the group.

Johnnic CEO Christine Ramon said Johnnic's cash holdings and strong balance sheet placed it in a good position to consolidate its gaming strategy.

The group has initiated talks with HCI to reach agreement on the way forward.

Johnnic reported pro-forma revenue excluding its telecommunications and media investments of R113m for the year to March, a 24% increase on the corresponding period last year.

Business Day