| Tue 9 Sep 2008, 17:08 | | HCI - HCI - Final approval of the transaction between HCI and Fabvest regarding |
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HCI
HCI
HCI - HCI - Final approval of the transaction between HCI and Fabvest regarding
the acquisition by HCI
HOSKEN CONSOLIDATED INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1973/007111/06)
(Share code: HCI ISIN: ZAE000003257)
("HCI")
Final approval of the transaction between HCI and Fabvest Investment Holdings
Limited ("Fabvest") regarding the acquisition by HCI of the remaining 50% of the
shares held by Fabvest in Fabcos Investment Holding Company Limited ("the
Fabvest transaction")
1. Introduction
Shareholders of HCI are referred to previous announcements published by HCI on
the Securities Exchange News Service of the JSE Limited and in the press (the
last such announcement was on 15 May 2007) regarding the Fabvest transaction in
terms of which HCI effectively acquired an indirect financial interest of 9.69%
in the casino licensee, Tsogo Sun Casinos (Pty) Ltd ("TSC") (a subsidiary of
Tsogo Investment Holding Company (Pty) Limited).
Shareholders were advised in such announcements that the Fabvest transaction had
become unconditional and was implemented in December 2006.
Shareholders were also advised that with the exception of the Mpumalanga
Gambling Board ("MGB"), the Fabvest transaction had been approved by all of the
other relevant Gambling Boards (namely, the KwaZulu-Natal Gambling Board, the
Eastern Cape Gambling and Betting Board and the Gauteng Gambling Board). The
MGB refused to approve the Fabvest transaction, declared it to be of no force
and effect and ordered HCI to dispose of the interest acquired in TSC.
HCI did not accept the MGB`s ruling and filed an application in the High Court
of South Africa (Transvaal Provincial Division) ("Court") for the ruling of the
MGB to be reviewed and set aside.
2. Outcome of the litigation process
HCI is pleased to announce that the parties have reached a settlement in
relation to the aforesaid litigation ("settlement agreement"), and that on 9
September 2008, the Court made the settlement agreement an Order of Court.
In terms of the settlement agreement, the MGB consented to:
* the Court reviewing and setting aside the decision of the MGB to refuse
HCI`s application for approval as well other ancillary decisions by the MGB
impacting on the Fabvest transaction; and
* the substitution of such decision by an order granting HCI approval, in
terms of section 36 of the Mpumalanga Gaming Act, 5 of 1995, to procure an
indirect financial interest in the business of TSC in accordance with HCI`s
application to the MGB dated 5 April 2006 (as amended).
It was further agreed by the parties that HCI would, via its corporate social
investment foundation, the HCI Foundation, on an ex gratia basis, donate an
amount of R5million to promote the social, educational and community development
of historically disadvantaged South Africans resident in the province of
Mpumalanga.
In light of the above Court Order and the settlement reached between the
parties, the Fabvest transaction is no longer subject to any further regulatory
approvals.
9 September 2008
Cape Town
Sponsor Legal
Advisor
Investec Edward
Bank Limited Nathan
Sonnenbergs
Inc.
Date: 09/09/2008 17:08:01 Produced by the JSE SENS Department.
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