Peermont Global - Press Release
PEERMONT GLOBAL LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1995/004449/06)
Share code: PTG ISIN: ZAE000058053
(`Peermont Global`)
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) (Pty), which owns the
Caesars Gauteng Hotel Casino and Convention Resort. The seller is US group
Caesars Entertainment, Inc. At the same time Peermont Global will acquire the
shares in a company which has a management contract for Caesars Gauteng. The
transaction will increase Peermont`s effective economic interest in Caesars
Gauteng from 62,2% to 83,0%. The transaction improves the empowerment
credentials of Caesars 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 Caesars Entertainment, Inc. will be that the
Caesars Gauteng property will 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
28 December 2004
Date: 28/12/2004 10:57:00 AM
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