Agile Capital Acquires Stake in Goldrush Group
Agile Capital, via its black-owned empowerment subsidiary Zico Capital, has acquired considerable equity in major gambling industry brand, the Goldrush Group, through a significant BEE transaction.
AGILE CAPITAL pursues investments across diverse sectors as a key PE player in the local market, holding a broad portfolio spanning multiple industries. ?We specifically target businesses offering tangible growth potential and solid operational track records,? notes Tshego Sefolo, CEO: Agile Capital. ?Our investment criteria further includes a minimum EBITDA of R30m.? The current deal sees Agile extend the variety of its interests still further and enter the gambling industry via its acquisition of interest in gaming business holding company, the Goldrush Group (Pty) Ltd. Goldrush is a diversified group holding gaming licences in most South African provinces and is focused on the bingo, sports betting and the limited payout machine (LPM) sectors. ?Goldrush is structured and managed through its operating divisions that are based in turn on these various sectors,? notes Mergan Naidoo, CEO: Goldrush. ?Our investment in Goldrush will significantly bolster the empowerment credentials of the business,? says Sefolo. ?As the transaction is via our subsidiary Zico Capital, the target company may regard such investment as 100% black owned for the purposes of the BBBEE scorecard, with significant women ownership. ?Considering the serious growth potential and capacity Goldrush has to offer, with many machines still waiting to be rolled out under licensing terms across our outlets, we are exceptionally pleased to have concluded these negotiations,? says Naidoo. ?The transaction will afford the company still greater access to funding to realise our expansion ideals.? The deal will be effected through the buy-out of existing BEE and non-BEE shareholders in the current structure. According to Londeka Shezi; a Director at Agile Capital, the transaction was a significant milestone as it afforded some of the minority shareholders to realise their investment in the business. The balance of equity in the company is to be retained by existing shareholders, which crucially includes the current management ? thereby ensuring incentive through direct interest. ?What makes this investment so very attractive is precisely the highly skilled and experienced management team that holds an impressive track record,? says Sefolo. ?With Goldrush holding a broad customer base given the footprint of the business across provinces, and considering with the strong entry barriers present in the highly legislated environment of the gambling industry, this deal offers significant value and promises superior returns,? concluded Sefolo.
Tsogo Sun Achieves Level 1 B-BBEE Status
Chairperson of the Tourism B-BBEE Charter Council, Dr Vuyo Mahlati, has congratulated Tsogo Sun on attaining the status of a Level 1 B-BBEE contributor.
DR MAHLATI said Tsogo Sun is a shining example of what can be achieved when businesses are committed to empowerment and commercial success. ?We congratulate the group on this outstanding achievement. You have put transformation policy into action, and you are an inspiration for others who want to follow the path you have embarked on. We believe this status will help Tsogo Sun to broaden empowerment and contribute to a more inclusive economy,? said Dr Mahlati. Tsogo Sun?s most recent empowerment certificate indicates that the group has achieved 62.1% black ownership and 34.4% black women ownership. Empowerment criteria, which are assessed for the certificate, include ownership, management control, skills development, enterprise and supplier development, and socio-economic development. Tsogo Sun is listed on the Johannesburg Stock Exchange. The group includes 14 casino and entertainment centres, and over 100 hotels in South Africa, Africa, the Seychelles and the Middle East. The portfolio includes theatres, cinemas, over 300 restaurants and bars and over 250 conference facilities, including the Sandton Convention Centre in Johannesburg. Tourism Minister Tokozile Xasa also congratulated Tsogo Sun for their empowerment efforts and wished Tsogo Sun every success in the future as it continues to offer great experiences to tourists, creates value for its shareholders, and contributes to the transformation of the tourism sector and the South African economy. ?We are determined to implement economic transformation throughout the tourism value chain, and we will succeed as more and more businesses drive transformation in their operations, as Tsogo Sun has done,? said Minister Xasa.