Peermont Global Increases Its Stake In Caesars Cas
Peermont Global Increases Its Stake In Caesars Casino
PEERMONT GLOBAL LIMITED
Incorporated in the Republic of South Africa
Registration number: 1995/004449/06
Share Code: PTG
ISIN: ZAE000058053
(`Peermont Global`)
Press Release 24 December 2004
PEERMONT GLOBAL INCREASES ITS STAKE IN CAESARS CASINO
Today Peermont Global announced that, together with its black economic
empowerment partner Marang (East Rand) Gaming Investments, it is increasing its
effective shareholding in Global Resorts (East Rand), theGlobal Resorts (East
Rand) (Pty), holding company of thewhich owns the Caesars Gauteng Hotel Casino
and Convention Resortcasino. The seller is US group Caesars Entertainment
Incorporated. At the same time Peermont Global will acquire the shares in a
company which has a management contract for Caesars Gautengcasino. The
transaction will increase Peermont`s effective economic interest in the Caesars
Gautengcasino from 62.2% to 83.0%. The transaction improves the empowerment
credentials of Caesar`s as Marang`s economic interest increases and it will have
voting rights over 50% of the shares in Global Resorts (East) Rand.
Ernie Joubert, CEO and Managing Director of Peermont Global said, `This
transaction is of strategic importance to us as it increases our interest in our
major asset. It simplifies our organisational structure. The timing of the
transaction is opportune given the current strength of the rand and the fact
that the purchase price is denominated in US Dollars.`
Anthony Puttergill, Group Deputy Managing Director said, `While the transaction
would have a slightly negative effect on earnings looking backwards, going
forward the transaction is expected to be earnings accretive, particularly once
gearing levels start reducing. Peermont Global will have a larger share of the
revenues generated by the increased number of slots and tables at Caesars
Gauteng. Peermont Global will also benefit from increased management fees.`
A consequence of the exit of Caesar`s Entertainment, Inc. will be that the
Caesars Gauteng property rs casino will need to be renamed during the course of
2005.
For further information please contact:
Anthony Puttergill
Peermont Global
Telephone: +27 11 267 9209
Mobile: +27 82 469 4794
aputtergill@peermont.co.za
Date: 28/12/2004 09:30:53 AM
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