Ramaphosa quits Johnnic Holdings

JOHANNESBURG – Top South African businessman Cyril Ramaphosa quit as chairman of casino and hotel firm Johnnic Holdings on Tuesday after Hosken Consolidated Investments Ltd took control of the firm.

Johnnic said in a statement that Ramaphosa, who had served as chairman since 1997, and three other directors had stepped down to allow HCI to put its own executives at the helm of the company. “Since Johnnic has acquired a new controlling shareholder, we felt it is only proper to resign to enable the new controlling shareholder to appoint a new chairman and their own directors,” Ramaphosa said in a statement.Johnnic Chief Executive Officer Christine Ramon said in December she would resign in six months after South Africa’s Competition Tribunal cleared the hostile takeover bid by HCI.Johnnic had urged shareholders to reject the bid, which valued the company at around 1,8 billion rand, arguing it was too cheap and that the company was best placed to grow alone.HCI, which controls television station eTV, wants to expand into the high-growth casino business and wanted exposure to Johnnic’s assets, which include a lucrative stake in Tsogo Sun casinos.Ramaphosa, a former trade unionist and senior member of the ruling African National Congress party, is chairman of Africa’s biggest cell phone company, MTN, and is one of South Africa’s richest black men.- Nampa-Reuters”Since Johnnic has acquired a new controlling shareholder, we felt it is only proper to resign to enable the new controlling shareholder to appoint a new chairman and their own directors,” Ramaphosa said in a statement.Johnnic Chief Executive Officer Christine Ramon said in December she would resign in six months after South Africa’s Competition Tribunal cleared the hostile takeover bid by HCI.Johnnic had urged shareholders to reject the bid, which valued the company at around 1,8 billion rand, arguing it was too cheap and that the company was best placed to grow alone.HCI, which controls television station eTV, wants to expand into the high-growth casino business and wanted exposure to Johnnic’s assets, which include a lucrative stake in Tsogo Sun casinos.Ramaphosa, a former trade unionist and senior member of the ruling African National Congress party, is chairman of Africa’s biggest cell phone company, MTN, and is one of South Africa’s richest black men.- Nampa-Reuters