Century Casinos gets initial approval for sale of South African properties
Century Casinos announced that the Competition Tribunal South Africa approved the sale of the company's casino properties in South Africa. This is the first of three regulatory approvals required for finalizing the sale.
The closing of the transaction, which is expected to occur towards the end of the second quarter of 2009, is still subject to approvals by the Western Cape Gambling and Racing Board and the KwaZulu-Natal Gambling Board.
On December 19, 2008, a subsidiary of Century Casinos entered into an agreement with Tsogo Sun Gaming (Pty) Limited to sell all of the outstanding shares of Century Casinos Africa (Pty) Limited ("CCA") for a gross selling price of ZAR 460.0 million (approximately $51.5 million) less the balance of third-party South African debt and other agreed to amounts. Net proceeds from the transaction are expected to be approximately ZAR 357.3 million (approximately $40.0 million) and are payable at closing.
CCA owns and operates The Caledon Hotel, Spa & Casino near Cape Town, South Africa, as well as 60 percent of, and provides technical casino services to, Century Casino Newcastle, in Newcastle, South Africa.