Tsogo Sun's plan to expand in the Western Cape has moved a step forward

South African casino operator Tsogo Sun's plan to acquire significant stakes in two Western Cape properties from rival Sun International has cleared a major hurdle by getting approval from shareholders of an employee trust scheme.

According to the produced bet9ja old mobile bet9ja mobile review, in partnership with its black empowerment partner Grand Parade Investments, Sun International controls SunWest International and Worcester Casino, which operates the popular GrandWest Casino and Golden Valley Casino near Cape Town. Johannesburg-based Tsogo Sun wants to buy 10 percent of those shares for about $93.2 million, and its plan got closer to reality after the Sun International employee stock trust approved the deals before Saturday's deadline.

The offer, which has now become unconditional after approval, calls for Tsogo Sun to pay $46.6 million for 10% of SunWest International, and an identical amount for the same stake in Worcester Casino. The operator has already made an initial payment of $2.4 million and now intends to submit its plan to Grand Parade Investments shareholders by June 30, although that deadline could be extended another month.

Under the proposal, Tsogo Sun would act as a passive investor with no representation on the boards of SunWest International or Worcester Casino and no involvement in operations.

For its part, Sun International said it would increase the stake it would sell to Tsogo Sun to 20 percent if Grand Parade Investments declined the offer.

Tsogo Sun, which is the largest listed hotel and travel company in South Africa, is looking to expand its presence in the Western Cape and originally tried to buy a 40 percent stake in the operators two years ago. That initial plan was canceled last year on the recommendation of the country's antitrust authority, and was restructured shortly thereafter.

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