Gold Reef rockets 10.6% on R10bn buyout bid
Business Report
14 August 2007

By Thabiso Mochiko

Johannesburg - Gold Reef Resorts shares jumped 10.6 percent to their highest level in three years yesterday after the casino and theme park operator said it had entered into exclusive talks with a group of investors that might lead to Gold Reef being bought for R9.83 billion.

The deal would be the biggest buyout of a listed casino company and would follow the buyout of Peermont Global for R7.3 billion by private investors last November.

The shares closed R3 up at R31.40, valuing Gold Reef at R9.1 billion.

Gold Reef said the talks were with a consortium led by Ethos Private Equity and including the casino group's management and existing empowerment partners. The consortium has offered R34 a share.

Key empowerment players in the bid include Reuel Khoza; Bongani Biyela, the former general manager of Gold Reef City; and Richard Moloko from empowerment firm Akani Leisure Resorts. Moloko and Biyela are directors of Gold Reef.

Ethos is expected to make a formal offer within a month.

Gold Reef said investors owning 76 percent of its shares had agreed to accept the offer. These included companies controlled by the Krok family, which own 25.90 percent, and Casino Austria with 21.69 percent, as well as the empowerment partners.

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