COLORADO SPRINGS, Colorado - (PRESS RELEASE) -- Century Casinos, Inc. (Nasdaq: CNTY) announced today that the Company's South African subsidiary, Century Casinos Africa (Pty) Ltd., entered into definitive agreements to acquire 60% of all issued and outstanding shares of Balele Leisure (Pty) Ltd. ("Balele") and to manage Balele's entire casino, resort and hotel operations.
Balele owns the Monte Vista Casino in Newcastle, South Africa, and currently operates in a temporary location with 200 slot machines and seven gaming tables. Balele has already secured 70 acres of land in a more prominent and high-traffic location with plans to develop a casino (with a minimum of 220 slot machines and ten table games) together with a 40 room hotel, conference center, restaurants, bars and ancillary facilities. The greater Newcastle area, with approximately 500,000 people, is situated half-way between Johannesburg and Durban in the northwestern portion of Kwazulu-Natal, which is South Africa's most populous province with over ten million people.
The purchase price for the controlling 60% stake amounts to R57,5 million (approx. $8,6m). An additional R2,5 million (approx. $370,000) would be payable if the casino revenue during the first twelve months of operation in the new location exceeds R95 million (approx. $14,2m). The terms of the management agreement provide for a payment to Century Casinos of 3,75% of total revenues, plus 7,5% of Balele's EBITDA (earnings before interest, tax, depreciation and amortization). The transaction is expected to close in the first quarter of 2006, subject to regulatory approvals.
"We are very excited about expanding operations in South Africa, based on the success of our Caledon Casino, Hotel and Spa resort near Cape Town," said Peter Hoetzinger, Co CEO and President of Century Casinos, Inc. "The Newcastle casino, which initially is approximately 70% of the size of the Caledon casino, is expected to become a substantial factor in our casino portfolio and to contribute significantly to our success," he continued.
About Century Casinos, Inc:
Century Casinos is an international casino company that owns and operates Womacks Casino and Hotel in Cripple Creek, Colorado; owns and operates The Caledon Hotel, Spa & Casino near Cape Town, South Africa; operates the casinos aboard the Silver Wind, Silver Cloud, Silver Whisper, The World of ResidenSea, and the vessels of Oceania Cruises; and owns 50% of, and provides technical casino services to the Casino Millennium in the Marriott Hotel in Prague, Czech Republic; and owns a majority interest in, and has begun construction on, casino and hotel developments in Central City, Colorado and Edmonton, Canada. The Company continues to pursue other international projects in various stages of development.
The address for the U.S. offices is 1263 A Lake Plaza Dr, Colorado Springs, CO, 80906. Telephone: (719) 527-8300. Fax: (719) 527-8301. E-Mail: email@example.com. For more information about Century Casinos, visit the Company's web site at www.centurycasinos.com. Century Casinos' common stock trades on The Nasdaq Stock Market® under the symbol CNTY
1263 A Lake Plaza Drive
Colorado Springs, CO 80906
Phone: (719) 527-8300
Fax: (719) 527-8301
|Century Casinos is an international casino company led by a team of gaming industry professionals who have developed and operated more than 100 casinos in 20 different countries.|