Century Casinos' subsidiary Century Resorts has entered into an agreement to sell all of the outstanding shares of Century Casinos Africa.
The total selling price is based on an enterprise value of ZAR460m (approximately $48m), which is estimated to result in net proceeds of approximately ZAR357m (approximately $37m) and is payable on the closing date. The purchase price has been guaranteed by the purchaser\‘s parent.
The purchaser is Tsogo Sun Gaming, a wholly-owned subsidiary of Tsogo Sun Holdings, which is a subsidiary of Hosken Consolidated Investments, listed on the Johannesburg Stock Exchange, and SAB Miller, listed on the London Stock Exchange. Tsogo Sun Gaming is a prominent casino and hotel resort owner and operator in southern Africa with five casinos and a portfolio of 82 hotels in eight countries.
Century Casinos Africa owns and operates The Caledon Hotel, Spa and Casino near Cape Town, South Africa, as well as 60 per cent of Century Casino Newcastle in Newcastle, South Africa. The company has reported an average annual consolidated EBITDA of ZAR54m over the last three years and generated 32 per cent of the company\‘s total annual net operating revenue.
The closing of the transaction is subject to certain conditions including, but not limited to, regulatory approvals and it is expected to be completed in the first half of 2009. The agreement also includes customary warranties, indemnifications and representations.
