GAMING FOR AFRICA Tsogo Acquisition of Emerald Casino gets Greenlight from
The Competition Commission of South Africa (CCSA) has given Tsogo Sun the go-ahead to proceed with its intended acquisition of Emerald Casino, subject to a number of conditions. The CCSA, held its ordinary meeting on Thursday 7
July 2022, to review and take decisions on matters brought before the Commission by members of the public and corporate applicants, in terms of the Competition Act (89 of 1998) as amended. These matters include but are not limited to complaints, mergers, and acquisitions, and shortly afterward issued a press statement outlining its conditions for the merger to proceed:
MERGERS AND ACQUISITIONS K2021134577 (South Africa) (Pty) Ltd (‘Newco’)/ Emerald Hotel Resort & Casino South Africa (Emerald) The Commission has recommended that the
Competition Tribunal approve the proposed transaction whereby Newco intends to acquire Emerald, with conditions. Newco is a newly registered private company jointly
controlled by Tsogo Sun Gaming and other shareholders. Tsogo Sun Gaming is an indirect subsidiary of Tsogo Sun Gaming Limited. Tsogo Sun Gaming Limited, all the firms controlled (directly or indirectly) by Tsogo Sun Gaming Limited, all the firms controlling Tsogo Sun Gaming Limited, and all of the firms controlled by those firms shall be referred to as ‘Tsogo Sun’. Tsogo Sun operates casino and entertainment
Commission was also concerned about the likely relocation of the Target Firm post-merger, including the likely impact of this on the local community. To address these concerns, the Commission recommended to the Tribunal that the proposed merger be approved subject to the following conditions: • That the merging parties shall not retrench any employees of the Target Firm for a period of twenty-four (24) months following the approval date.
destinations offering a wide variety of gaming, dining, and entertainment facilities in South Africa. In addition to its interests in casinos, Tsogo Sun also has interests in bingo and Limited Pay-Out Machine (LPMs) operations as well as bookmaking interests.
The Target firm is Emerald and the majority
shareholding interest in Emerald is held by LCIOI, which is a wholly owned subsidiary of a foreign/ offshore Investment Manager. Emerald offers casino, short-term hotel accommodation, conferencing or banqueting facilities, and leisure activities. Emerald is situated in Vanderbijlpark, Gauteng. Following its investigation of the proposed merger,
the Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in the relevant market. However, the Commission was concerned about the
likely implications of the proposed merger on public interest grounds such as employment, and on local SMMEs supplying the Target Firm pre-merger. The
Limpopo Gambling Board Tackles Illegal Gambling
The Limpopo Gambling Board has clamped down on illegal gambling in the province and sent a very public message to offenders when the Board destroyed numerous illegal slots siezed in the clampdown operations. The 183 illegal slots were destroyed at the Bosveld Scarpyard in Polokwane recently. Chairman of the Limpopo Gambling Board,
Elijah Tijane and Board CEO Gregory Makoko were on hand to address media and stakeholders on the Board’s serious intent to clamp down on illegals that rob the province of resources and pose a serious threat to the public.
BMM Testlabs to Provide Testing in Tanzania
Another jurisdiction for BMM Testlabs - the company is now licensed to provide compliance testing services in Tanzania.James Mbalwe (left) of the Gaming Board of Tanzania is seen with Boipelo Lencwe (centre) of BMM and Catherine Lamwai of the Gaming Board at the confirmation of the licence. BMM’s vice-president operations and sales for
South Africa, said: “it is pleasing to be granted a licence to provide compliance testing services for the Tanzanian gambling market.” The company is now accepting supplier
Mr Serobi Maja (LGB Board Member); Mr Matodzi Ratumbu (Action HOD - LEDET) and Mr Gregory Makoko (CEO, LGB)
submissions for testing services in the country. BMM employs over 500 people in 15 global locations and serves over 470 gaming jurisdictions.
SEPTEMBER 2022 27
• If any positions become available at the Target Firm within twenty-four (24) months from the approval date, the Acquiring Firm will consider employing the former employees of the Target Firm who had been retrenched by the Target Firm in 2021, in circumstances where their skillsets are similar to, and/or suitable for, the relevant positions which may become available at the Target Firm, and the Acquiring Firm and the relevant employee(s) are able to agree to mutually agreeable terms of employment.
• The merging parties shall also for a period of three years (3) from the approval date, ensure the merged entity maintains or improve on the current level of procurement of goods and services from suppliers situated in the surrounding area of the Target Firm.
• Newco committed to substantial investment in the Emerald business over a period of 5 (five) years following the approval of the merger. In addition, for a period of five (5) years from the
approval date, Newco commits not to relocate the casino licence in respect of Emerald from the current site on which Emerald’s operations are located to another site within the Gauteng province.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68
