Merger creates leisure giant

Xolile Bhengu

Xolile Bhengu

Property development company Acc-Ross Holdings said last week it had entered into an agreement to acquire Pinnacle Point Holdings for R1,5billion.

The two companies' gross sales value is estimated to be in excess of R35billion, expected to be realised over a 10-year period.

The new Acc-Ross and Pinnacle group will be headed by former South African Chamber of Mines chief executive Lazarus Zim as chairman.

Alt-X listed Acc-Ross said the grouping with Pinnacle would have significant resort, residential, leisure, hotel, retirement, commercial and gaming development opportunities, with assets situated in South Africa, Mozambique, the Seychelles and Nigeria.

The purchase of Pinnacle will be paid for through an issue of shares, and 60percent of the shares will be owned by Pinnacle.

Zim said on Friday the merger would create one of the largest lifestyle development companies in Africa.