Nicola Jenvey

KwaZulu-Natal Correspondent

MORIBO Leisure has wholly acquired IFA Zimbali Lodge and IFA Hotels & Resorts in a R105m deal that sees the gaming group reverse list into the hotels and resorts group and execute a share consolidation.

IFA Hotels & Resorts is the local subsidiary of Kuwaiti-based group International Financial Advisers (IFA). The holding company expanded into real estate in 2002 and is currently at the forefront of companies engaged in the development of tourism projects, hotels and resorts in the Middle East, Europe, Africa and the Indian Ocean.

In 2003 IFA entered a multi-billion-rand joint venture with Tongaat Hulett property arm Moreland Development to develop the 370ha Zimbali Coastal Resort and the future 300ha Zimbali Lakes development.

The joint venture is developing around 700 residential opportunities within Zimbali Coastal Resort, while the Lakes development is a natural extension of it and planning is under way for creating a resort within that development as well.

IFA Zimbali owns the Sun International-operated Zimbali Lodge, a five-star boutique hotel rated by Conde Naste Traveller magazine as one of the top hotels in the world.

Another 20 rooms will be added to the hotel next year. In terms of the deal announced on Friday, Moribo will acquire IFA Zimbali Lodge and IFA Hotels & Resorts as a reverse take-over, and will change its name to IFA Hotels & Resorts to better reflect its business.

Moribo will also consolidate its shares on a one-for-10 basis and reconstitute the board. Moribo will issue 215,4-million new shares, covering the R85m acquisition of IFA Zimbali and R20m acquisition of IFA Hotels. Moribo and its subsidiaries are currently dormant and following the reverse takeover, the group will settle outstanding liabilities and distribute the cash as a dividend.

The board will apply to the securities regulation panel to dispense with making a mandatory application to minority shareholders should the majority of shareholders vote in favour of waiving the condition.

Moribo has already received undertakings from shareholders holding 68% to approve the transaction, but the issue remains subject to regulatory approval.

Management says the deal affords Moribo shareholders the opportunity to participate in future developments that will enhance Moribo’s global representation and broaden investment opportunities.

Through its international network of developments and sales and marketing distribution systems, IFA will bring to SA added value in terms of its international customer base. The multinational also offers its international clients an alternate investment vehicle via the JSE.

Historical pro forma figures for the year to December 2004 show the deal plus the one-for-10 will boost profit to 7,93c a share against the 10,63c a share loss, and will boost net asset value to 47,16c from a 2c loss.