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Peermont Buy-out Wins Top Empowerment Award



The Barloworld Wits Business School BEE Awards for 2008 (previously the BusinessMap BEE Awards) has awarded the BEE Deal of the Year Award to the Mineworkers Investment Company (MIC) led buyout of Peermont, concluded in 2007.

Peermont buyout Wins Top Empowerment Award

The Barloworld Wits Business School BEE Awards for 2008 (previously the BusinessMap BEE Awards) has awarded the BEE Deal of the Year Award to the Mineworkers Investment Company (MIC) led buyout of Peermont, concluded in 2007.

In terms of the transaction, MIC led a consortium that acquired all the issued share capital of Peermont in a R7,3 billion transaction with Peermont management, individual promoters and community trusts and funders, effectively resulting in 83% black ownership of Peermont as calculated in terms of the DTI's B-BBEE codes of good practice.

It created South Africa's most empowered gaming and hospitality company.  The consortium included Peermont management and trusts benefiting children, youth and black businesses. Significantly, the Peermont transaction was one of the first foreign-funded BEE transactions in South Africa, indicating comfort from international investors with BEE control.

Anthony Puttergill, CEO of Peermont commented: "We congratulate MIC on receiving this important award. This pioneering transaction is indeed an accurate reflection of our shared commitment at Peermont to set new standards, embrace cultural diversity and respect the need for empowerment in all facets of our business."  

As a competitive business that owns and operates an enviable portfolio of world class gaming, lodging, convention and leisure businesses, Peermont takes an active role in the continuing development of its diverse workforce to assist in meeting and exceeding customer expectations.

"At Peermont we recognise our employees as a dynamic team contributing to our success every step of the way. We aim to provide an integrated learning and development experience to our employees to strengthen their commitment to Peermont's values, inter alia by offering bursaries and learnership programmes to employees in support of their advancement within the company. We also strive to set new standards by giving back to the community, in particular through our support of our trusts benefiting children, youth and black businesses," adds Puttergill.

Recognising the tremendous potential of the Peermont properties, the newly constituted Board of Peermont, following the MIC transaction, approved a comprehensive growth, refurbishment and re-branding strategy across the Peermont properties in South Africa and Botswana.   

Some of the key achievements the renewed focus has delivered to date are: 

  • The current construction of the brand new 248 room Peermont Metcourt at Emperors Palace at a cost of R170 million.
  •  The upgrade of the Mondior Hotel at Emperors Palace to a four star hotel, enabling us to offer a variety of three, four and five star hotels at one destination.
  • The refurbishment, upgrade and re-branding of the Khoroni Hotel, Casino and Convention Resort (previously Tusk Venda) in Thohoyandou at a cost of R25 million.
  • The refurbishment of Tusk Mmabatho, and the scheduled re-branding of the resort to Mmabatho Palms in October 2008.  The initial refurbishment was completed at a cost of R10 million, with a further R17 million approved for an upgrade of the rooms, restaurant and casino.
  • The refurbishment and upgrade of our Walmont hotel and Grand Palm casino in Gaborone, Botswana at a cost of R20 million.
  • The upgrade of our standby power capacity throughout the group at a currently estimated cost of R16 million.
  • A new Metcourt Hotel and Conference Centre currently under construction at the Rio Casino Resort in Klerksdorp at a cost of R70 million, scheduled for opening in the first quarter of 2009. 
  • The proposed new Richards Bay Marine Waterfront development, which sees Peermont relocating the Tusk Umfolozi licence to Richards Bay for opening in 2010 at a current estimated cost of R220 million.  This new resort will comprise a casino, Metcourt hotel, restaurants, convention centre and entertainment facilities.  Approvals from regulatory authorities are currently being sought. 

Peermont's CEO Puttergill concluded: "We are well placed to take advantage of the exciting growth opportunities at our properties and in the Southern African region. While growth in our gaming revenues has subsided in light of tougher economic conditions, demand for accommodation at our resorts is at an all time high. We expect the buoyancy in our hospitality trade to continue through 2010 and beyond."

[22 May 2008]

Enquiries

Peermont                                                      011 557 0557

Anthony Puttergill, CEO                                    

College Hill                                                   011 447 3030

Sugitha Naidoo                                      083 548 4692

 

Background note:

Peermont has an excellent track record in the design, development, management, ownership and operation of multi-faceted integrated resorts. This includes hotels, casinos, convention centres, retail outlets, restaurants, bars and other sport and entertainment facilities.  The group has a strong market position in South Africa and Botswana, where it has an ownership interest in, and management responsibility for 7 integrated resorts with a combination of casinos, hotels, convention centres and dining facilities, 4 stand alone hotels, and 3 casinos.

These are Emperors Palace Hotel, Casino and Convention Resort in Johannesburg, Graceland Hotel, Casino and Country Club in Secunda, the Mondazur Resort Estate Hotel at San Lameer, KwaZulu-Natal, the Frontier Inn & Casino in Bethlehem, The Grand Palm Hotel, Casino and Convention Resort in Gaborone - Botswana, as well as the Mondior in Gaborone and the Metcourt in Francistown. In addition Peermont owns and manages Umfolozi in Empangeni, Khoroni in Thohoyandou (formerly Tusk Venda), Rio in Klerksdorp, and Tusk Mmabatho.

For more information visit http://www.peermont.com/

 

 


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