MKL
MKL
MKL - Makalani Holdings - Increases its portfolio by R538 million to 2.1 billion
Makalani Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/000726/06)
Share code: MKL
ISIN: ZAE000066700
("Makalani" or "the company")
MAKALANI INCREASES ITS PORTFOLIO BY R538 MILLION TO R2.1 BILLION
Introduction
Unitholders of Makalani are advised that Makalani has increased its portfolio of
invested assets by R538 million to R2.1 billion. Makalani has provided funding
for the Gold Reef Resorts Limited ("Gold Reef") empowerment transaction ("the
Gold Reef investment") and the purchase of Fuel Logistics Group (Proprietary)
Limited ("Fuel") ("the Fuel investment").
The Gold Reef investment
Makalani has provided funding of approximately R293 million in two separate but
related transactions to enable Platoon Trade and Invest 15 (Proprietary) Limited
("Platoon") and Saddle Path Props 20 (Proprietary) Limited ("Saddle") to
subscribe for shares in Gold Reef which, inter alia, resulted in Gold Reef being
owned 25.1% by various BEE shareholders. Makalani provided funding of
approximately R152.6 million to Saddle and R139.9 million to Platoon.
Gold Reef is a gaming and entertainment company. Its interests incorporate
Akani Egoli (Proprietary) Limited, which operates Gold Reef City Casino and
Theme Park, West Coast Leisure (Proprietary) Limited, which operates Mykonos
Casino, Akani Msunduzi (Proprietary) Limited, which operates Golden Horse
Casino, Garden Route Casino (Proprietary) Limited, which operates the Garden
Route Casino, Goldfields Casino and Entertainment Centre (Proprietary) Limited,
which operates Goldfields Casino and SilverStar Development Limited which is
currently constructing the SilverStar Casino.
The Fuel investments
Makalani participated in the leverage buyout of Fuel by Actis Africa Fund 2 L.P.
(Actis), a private equity fund. Makalani provided funding of approximately R134
million as part funding to an empowerment company to acquire a 25% equity
interest in Fuel and simultaneously acquired a direct equity stake in Fuel for
approximately R111 million.
Fuel is a logistics services group whose core businesses are centred on the
provision of intelligent, innovative and customised solutions integrating e-
commerce and IT with a substantial physical logistics infrastructure. Fuel is
principally engaged in the distribution of a wide range of commercial goods
including clothing, high value items, pharmaceuticals, spare parts, electronics
etc. In addition, Fuel also provides related warehousing and other logistic
services.
Sandton
02 July 2007
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 02/07/2007 15:35:02 Produced by the JSE SENS Department.
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