Century Casinos Sells South African Casino Properties

23 December 2008

Century Resorts Ltd., a subsidiary of Century Casinos Inc., has entered an agreement to sell the outstanding shares of Century Casinos Africa Ltd., the company announced on Monday.

The Century Casinos Africa, which owns and operates The Caledon Hotel, Spa & Casino as well as 60 percent of Century Casino Newcastle, is being sold to Tsogo Sun Gaming Ltd., a wholly owned subsidiary of Tsogo Sun Holdings, for approximately $48 million, the company said.

According to the company, the closing transaction, which it expects to be completed in the first half of 2009, is subject to regulatory approvals.

Todd Eilers, analyst with Roth Capital Partners in California, said in a research note that it was a “great deal” at an “excellent price in a normal market, and represents an extraordinary price given today's operating environment and depressed valuations across the sector.”