Casino group Tsogo Sun and Niveus Investments, both controlled by Hosken Consolidated Investments (HCI), decided on Tuesday to rejig the terms of a recent R4.6bn transaction involving alternative gaming assets. In late 2016, Niveus accepted a scrip-based offer for its limited payout machine (LPM) and electronic bingo terminal (EBT) operations held in Vukani and Galaxy, respectively. But it seems pressure from minority shareholders in Niveus has prompted key changes to the terms of the transactions. Under the new terms Niveus’s alternative gaming assets will be packaged into a new company, Gameco, which will be unbundled to shareholders. Tsogo will then acquire HCI’s more than 50% stake in Gameco and offer to buy out Gameco minority shareholders. The exchange ratio will be one Tsogo share for every 2.875 Gameco shares, with a cash alternative of R9.74 per Gameco share (equating to a floor price of R28 per Tsogo share). The Gameco shares retained by Niveus (roughly 225-million Gameco ...

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