South African-based hotel and casino company Johnnic Holdings Inc., is going to pay 100 million dollars to buy a big part of Tsogo Sun Casinos, thus facing the competition of its rival HCI, as Reuters reported.

Johnnic has come to an agreement with Tsogo Sun Casinos to buy the 25 percent of stakes that Nafhold (Nafcoc Investment Holdings) has in Tsogo Investment Holding Company (TIH). This company controls Tsogo Sun. The estimated cost of the operation is 675 million rand.

As a consequence of this announcement, shares in Johnnic increased 7,1 percent to 12 rand, for the stocks premium also increased to 10,70 rand per share cash offered by HCI. This company also offered to one of its shares for 2.57 of Johnnics, which Johnnic rejected because they considered both offers not profitable enough.