Aristocrat sells stake in South African unit

Tuesday, July 5, 2005 | 9:19 a.m.

Aristocrat Leisure Ltd., the world's second-largest maker of slot machines, sold a 28 percent stake in its African unit to Yabohle Investment Ltd. under laws aimed at boosting black ownership of businesses.

Aristocrat will make a profit of A$6 million ($4.5 million) on the sale, the Sydney-based company said in a statement to the Australian Stock Exchange today. Aristocrat is the first multinational gaming company to sell a stake under the laws, it said.

Black Economic Empowerment, or BEE, is aimed at increasing economic participation by South Africa's black majority, who were excluded from the economy under apartheid, which ended in 1994.

Yabohle is a group of investors led by Matemeku Investments Ltd., which has interests in minerals, tourism and hospitality, Aristocrat said. Matemaku's Executive Chairman Moss Mashishi, is the president of the South African Sports Confederation and Olympic Committee.

"Aristocrat is fortunate that, while embracing BEE, it has secured a partner of Yabohle Investments' caliber and skill set," the company said in the statement.

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