Guma bids R2bn for Tourvest
April 29, 2008
By Sibongile Khumalo
Johannesburg - Black economic empowerment (BEE) company Guma Tourism has made a R2 billion bid for a controlling stake in Tourism Investment Corporation (Tourvest) after Imperial's disposal of its 66 percent stake.
Last year Imperial announced its intention to offload its non-core interests.
Tourvest has since attracted suitors such as Bidvest and Mvelaphanda, but the Guma consortium, led by entrepreneur Robert Gumede, has come out the strongest.
Formerly known as Gijima, the company would join forces with Old Mutual, the Industrial Development Corporation and some of the Tourvest management for the takeover bid.
Gumede said last week that the bid had received considerable support from major Tourvest shareholders.
"Acquiring Tourvest will be a great opportunity to drive transformation in the industry," he said. "Tourvest is a unique company that encompasses all aspects of tourism. I believe that we have put up a good offer and investors are likely to get good returns for their money."
Once the transaction was completed, Guma Tourism would have a 51 percent shareholding in Tourvest.
In its annual report , Imperial noted that the overall performance of the division had been satisfactory despite some operational problems in isolated areas. It said that the tourism company's working capital was in excess of the desired levels.
Tourvest is the largest tourism company in southern Africa. It conducts travel and financial services and operates tourism merchandising businesses. Its retail merchandising division caters for in-flight, duty-free shopping services on six international airlines including SAA, Virgin Atlantic and Kenya Airways and operates 16 souvenir stores on the Caribbean islands of Barbados, Grenada and Tortolla.
In February the company announced that it was expecting losses in the second half of the year at its Kenyan units, due to the country's post-election political turmoil.
Earlier this month, Eric de Jaeger, who heads Tourvest's Zimbabwean operations, said expansion in Victoria Falls depended on the country's political stability. The company owns two guest lodges, restaurants and a safari business in Victoria Falls.
On Friday, Tourvest shares jumped 16 percent to R1.92. The leisure and hotel sector slipped 1.61 percent.
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