Niveus plan gets tongues wagging
The proposal to exchange gaming assets for Tsogo shares sets off speculation about whether investment vehicle will remain listed
Niveus, the cash-flush specialist investment vehicle controlled by empowerment conglomerate Hosken Consolidated Investments (HCI), is the subject of much market conjecture after proposing to sell its core alternative gaming assets to casino operator Tsogo Sun late in 2016. HCI is also the majority shareholder in Tsogo. The sale by Niveus of its Vukani limited-payout machine operations and its Galaxy Bingo assets (including shares in the small Kuruman casino in the Northern Cape) is widely seen as HCI looking to consolidate its gaming interests in one listing. The terms of the deal will see Tsogo acquiring Vukani and Galaxy in exchange for the issue of 160-million Tsogo shares. This values the alternative gaming assets at about R4.3bn, giving Niveus — which is 52.8% held by HCI — an interest of about 16% in the enlarged Tsogo. HCI’s direct interest of 47.61% in Tsogo will effectively increase to 56%. The question is whether Niveus — which was spun off from HCI only in 2012 — will end...
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