HCI reaches R400m settlement with lottery operator Ithuba
Hosken Consolidated Investments went to court seeking management fees it says it was owed by Ithuba
Hosken Consolidated Investments (HCI) and lottery operator Ithuba have called off their court battles after reaching a R400m settlement in favour of HCI.
HCI said the settlement is to their “mutual satisfaction” and that all agreements between the two have been cancelled, and all litigation called off.
In July, after a five-year legal battle, HCI was awarded the right to examine Ithuba’s financial statements.
The investment group had taken legal action against Ithuba, saying that it was owed management fees by the lottery operator.
HCI had made an urgent court application seeking access to Ithuba’s financial statements, which was dismissed in November.
The matter was taken for arbitration where it was decided that HCI should have oversight rights as these were agreed to when it gave Ithuba R325m.
HCI said on Friday that the parties “have, in consequence, agreed to abandon all judgments and outstanding litigation in relation thereto and to cancel all other agreements between them in exchange for payment of R400m”.
Ithuba spokesperson Busisiwe Msizi said on Friday that the settlement prohibited making details public, but that Ithuba is pleased that the matter is now resolved.
With Alistair Anderson
Update: August 7 2020
This article has been updated with additional comment and financial information.
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