Date: 20/06/2003
Source: Department of Public Enterprises
Title: Radebe: Signing sale agreement for last batch of Aventura resorts
SUCCESSFUL COMPLETION TO RESTRUCTURING OF AVENTURA RESORTS
REMARKS BY THE MINISTER OF PUBLIC ENTERPRISES, MR. JEFF RADEBE ON THE OCCASION OF THE SIGNING OF THE SALE AGREEMENT FOR THE FINAL BATCH OF RESORTS, 20 June 2003
Ladies and Gentlemen,
As you all know my department is the transformation agency for State Owned Enterprises. Our goal is to contribute to the economic development process in South Africa by
* Ensuring that SOEs deliver goods and services that will contribute to a better life for all;
* Promoting more efficient SOEs that will increase the competitiveness of the country's economy; and
* Reducing public sector borrowing; and * Releasing funds for other social and economic needs.
It is in respect of this final objective that we are gathered here today to witness the signing of an agreement between Government and the Forever Siyonwaba Consortium for the sale of the eight remaining Aventura Resorts.
The journey has not always been easy.
When the restructuring process started, Aventura Resorts consisted of 15 holiday resorts.
The first three resorts, being Bloemfontein, Aldam and Christiana, were sold for R23 million in 2001. The sale proceeds were used to reduce the company's overdraft with ABSA Bank.
The proceeds from the sale in 2002 of the next four resorts, being Eiland, Heidelbergkloof, Kareekloof and Roodeplaats, which were sold individually for a total sum of R32 million, were also used to settle the ABSA Bank overdraft.
I should mention that Government is still owed R16,2 million from the sale of the Roodeplaats Resort. I am glad to report, however, that we hold a non refundable deposit of R1,6 million and bank guarantees for the balance.
The packaged sale of the last eight resorts (namely Loskopdam, Blydepoort, Tshipise, Gariep, Plettenberg, Warmbaths, Badplaas and Swadini) followed a public process, which attracted more than 30 proposals that were narrowed down to two short-listed candidates.
The Cabinet approved the choice of the Forever Siyonwaba Consortium the preferred bidder in May this year.
The consortium is 70% owned by Forever Resorts South Africa and 30% owned by Siyonwaba Leisure.
Forever Resorts is an international resorts operator with 33 resorts worldwide, five of which are in South Africa. It is a US limited liability company owned and controlled by Mr Rex Maughan who is with us today.
Siyonwaba Leisure is 100% black-owned. The shareholders are:
* The Izinyoni Leisure Consortium which owns 20%. It comprises of Izinyoni Investments and the Bakgatla Foundation, representing the Bakgatla Tribe of over 500 000 subjects of Kgosinyalala Pilane
* The Research & Security Development Trust, which owns 51%, is a charitable trust that funds skills development and education programs for the youth
* The Siyonwaba Consortium is a consortium of black businessman that owns 29%. Led by Mr Leslie Mkhabela, an attorney, it is a new entrant to the hospitality industry.
It is important to note that the consortium has been asked to commit to a timetable to increase the empowerment shareholding.
Following comprehensive negotiations the consortium will:
* Retain all employees for a minimum period of three years. On the other hand, the consortium has committed about R50 million to improve the resorts and this could well mean that even more jobs will be created in the short to medium term
* Pay a gross purchase price of R200 million. Government has allowed the deduction of R58 million to cover Club Prive debenture liabilities and the price for future holiday accommodation for Club Prive members until 2010 and certain other liabilities, Government will receive a net amount of R101 million.
Aventura Resorts (Pty) Ltd will be wound up and deregistered at the earliest opportunity, probably before the year-end.
Ladies and gentlemen, I think we can all take comfort from the fact that all the Aventura resorts are now in the hands of entrepreneurs and that the State has retired a significant financial burden and still managed to release R100 million for social and other economic needs.
I would like to thank my team at DPE for a job well one and wish the Forever Siyonwaba Consortium all good fortune.
Source: Department of Public Enterprises (www.dpe.gov.za)
Source: Department of Public Enterprises
Title: Radebe: Signing sale agreement for last batch of Aventura resorts
SUCCESSFUL COMPLETION TO RESTRUCTURING OF AVENTURA RESORTS
REMARKS BY THE MINISTER OF PUBLIC ENTERPRISES, MR. JEFF RADEBE ON THE OCCASION OF THE SIGNING OF THE SALE AGREEMENT FOR THE FINAL BATCH OF RESORTS, 20 June 2003
Ladies and Gentlemen,
As you all know my department is the transformation agency for State Owned Enterprises. Our goal is to contribute to the economic development process in South Africa by
* Ensuring that SOEs deliver goods and services that will contribute to a better life for all;
* Promoting more efficient SOEs that will increase the competitiveness of the country's economy; and
* Reducing public sector borrowing; and * Releasing funds for other social and economic needs.
It is in respect of this final objective that we are gathered here today to witness the signing of an agreement between Government and the Forever Siyonwaba Consortium for the sale of the eight remaining Aventura Resorts.
The journey has not always been easy.
When the restructuring process started, Aventura Resorts consisted of 15 holiday resorts.
The first three resorts, being Bloemfontein, Aldam and Christiana, were sold for R23 million in 2001. The sale proceeds were used to reduce the company's overdraft with ABSA Bank.
The proceeds from the sale in 2002 of the next four resorts, being Eiland, Heidelbergkloof, Kareekloof and Roodeplaats, which were sold individually for a total sum of R32 million, were also used to settle the ABSA Bank overdraft.
I should mention that Government is still owed R16,2 million from the sale of the Roodeplaats Resort. I am glad to report, however, that we hold a non refundable deposit of R1,6 million and bank guarantees for the balance.
The packaged sale of the last eight resorts (namely Loskopdam, Blydepoort, Tshipise, Gariep, Plettenberg, Warmbaths, Badplaas and Swadini) followed a public process, which attracted more than 30 proposals that were narrowed down to two short-listed candidates.
The Cabinet approved the choice of the Forever Siyonwaba Consortium the preferred bidder in May this year.
The consortium is 70% owned by Forever Resorts South Africa and 30% owned by Siyonwaba Leisure.
Forever Resorts is an international resorts operator with 33 resorts worldwide, five of which are in South Africa. It is a US limited liability company owned and controlled by Mr Rex Maughan who is with us today.
Siyonwaba Leisure is 100% black-owned. The shareholders are:
* The Izinyoni Leisure Consortium which owns 20%. It comprises of Izinyoni Investments and the Bakgatla Foundation, representing the Bakgatla Tribe of over 500 000 subjects of Kgosinyalala Pilane
* The Research & Security Development Trust, which owns 51%, is a charitable trust that funds skills development and education programs for the youth
* The Siyonwaba Consortium is a consortium of black businessman that owns 29%. Led by Mr Leslie Mkhabela, an attorney, it is a new entrant to the hospitality industry.
It is important to note that the consortium has been asked to commit to a timetable to increase the empowerment shareholding.
Following comprehensive negotiations the consortium will:
* Retain all employees for a minimum period of three years. On the other hand, the consortium has committed about R50 million to improve the resorts and this could well mean that even more jobs will be created in the short to medium term
* Pay a gross purchase price of R200 million. Government has allowed the deduction of R58 million to cover Club Prive debenture liabilities and the price for future holiday accommodation for Club Prive members until 2010 and certain other liabilities, Government will receive a net amount of R101 million.
Aventura Resorts (Pty) Ltd will be wound up and deregistered at the earliest opportunity, probably before the year-end.
Ladies and gentlemen, I think we can all take comfort from the fact that all the Aventura resorts are now in the hands of entrepreneurs and that the State has retired a significant financial burden and still managed to release R100 million for social and other economic needs.
I would like to thank my team at DPE for a job well one and wish the Forever Siyonwaba Consortium all good fortune.
Source: Department of Public Enterprises (www.dpe.gov.za)
Advertisement
EMAIL THIS ARTICLE SAVE THIS ARTICLE FEEDBACK
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
