In 2000, Bravura assisted JSE-listed HCI, one of the first-generation broad-based black economic empowerment companies in South Africa, to acquire Vukani Gaming (Pty) Limited (“Vukani”), formerly known as SAVGC. At the time the company was described as having strong potential to emerge as a frontrunner in the Limited Payout Machine sector of the gaming industry. Known today as Vukani Gaming Corporation, the company is now the leading supplier and operator of Limited Payout Machines in South Africa.
In January 1997, HCI was acquired by union investment companies the Mineworkers’ Investment Company and Sactwu Investment Group. As a first-generation black empowerment company, HCI pioneered a broad-based empowerment concept that was soon emulated by others. Today HCI’s major shareholder is the South African Clothing and Textile Workers Union.
HCI’s pursues a diverse group of investments within the sectors of interactive gaming; hotel and leisure; media and broadcasting; transport; and mining and properties.
In 2001, HCI consolidated its gaming interests into one vehicle by disposing of its entire interest in the start-up operation Vukani, to Global Payment Technology Holdings (Proprietary) Limited (“GPT Holdings”) in exchange for shares in GPT Holdings.
By 2005, Vukani had rolled out over 320 Limited Payout Machines and was the only operator to have licences in all operating provinces including Mpumalanga, KZN, Western Cape and the Eastern Cape. With a consistently expanding footprint, Vukani had by 2010 firmly established itself as the leader within the industry, operating in all eight provinces.
In 2017, Vukani could report a total of 5 052 Limited Payout Machines distributed throughout South Africa and with gross earnings of R343 million. In December of that same year, a strategic decision to provide investors with a single point of entry into HCI’s gaming operations resulted in Tsogo Sun, a subsidiary of HCI, acquiring 100% of Vukani.
Today, Vukani remains strongly aligned to HCI’s empowerment strategy by playing an active role in the advancement and economic empowerment of previously disadvantaged communities in South Africa. And the company’s growth strategy continues: “We have captured the lion’s share of the market, and will continue to grow.”
Categories: Corporate Finance, Economy, News, Transaction
Published: 27 February 2019