The casino and hotel company based in South Africa Johnnic Holdings has made a revolutionary bursary move with its announcement of future acquisition of Nafcoc Investment Holdings (Nafhold). The operation is worth 675 million rand and will increase Johnnic Holdings stake in Tsogo Sun casinos in 100 million dollars. The lucrative Tsogo Sun runs the Montecasino resort in Johannesburg, and other big casinos in the country.

With this operation, Johnnic Holdings will have access to a 25 percent of Nafholds stake in Tsogo Investment Holding Company (TIH). TIH controls Tsogo Sun and the operation will favor them too, enabling them to face their rival HCI, which also intended to take control of TIH. Johhnic also sees its stake in TIH increase to 34,5 percent. The arbitration of Johhnic with Fabvest Investment Holding Company (co-owner of TIH) could increase its stake to a 44 percent. Nafhold will carry out a restructure of its assets before Johhnic actually acquires the company.

Johhnic was not the only party interested in taking control of TIH. Hosken Consolidated Investments (HCI), as we said above, was also strongly interested in that operation and as a matter of fact, they tried to buy Johhnic. However, Johhnic rejected the offer of 1.8 million rand offered by HCI considering it too cheap.

The president of Johhnic is the South African businessman Cyril Ramaphosa. Earlier this year, he decided to focus his business on casinos and hotels, that is why he got rid of his firm Johhnic Communications. After the deal was made public Johhnic shares increased 7,1 percent having a positive influence on the Johannesburg all-share index.