Gold Reef gives BidCo thumbs up
Business Report
4 September 2007

Johannesburg - Gold Reef on Tuesday said it has decided to recommend an offer submitted by BidCo for a cash consideration of R34 per Gold Reef share.

The deal is valued at approximately R11.4 billion.

BidCo's shares are held indirectly by a consortium led by Ethos Private Equity, comprising Ethos, investment subsidiaries of Goldman Sachs and real estate investment funds sponsored and managed by Goldman Sachs, certain broad-based Black Economic Empowerment groups which currently own an interest in Gold Reef and members of the Gold Reef management team.

The offer is backed by a fully committed financing package provided by a group of banks, including Goldman Sachs and Nedbank Corporate.

Gold Reef said the scheme would provide shareholders with the opportunity to realise significant value for their investment.

If the scheme does not receive court sanction, then BidCo may make a general offer to acquire the entire issued share capital of Gold Reef.

The offer of R34 per share represents a 44.5 percent premium to the 30 day volume weighted average price for the 30 trading days to 8 March 2007 of R23.53 - the day before the first cautionary announcement was published - and a 48.5% premium to the closing price per Gold Reef share on the JSE on March 8 of R22.90.

The offer is conditional on approvals from Competition authorities, the JSE, the SRP and the South African Reserve Bank, the relevant gambling boards and shareholders.

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