Gold Reef Resorts (JSE:GDF) has successfully challenged a ruling made by the Securities Regulation Panel (SRP), which put a stop to the company being bought by a consortium led by Ethos Private Equity.
The Ethos-led bid had offered R34 a share. The current price is R17.50.

At the time of the proposed buyout Tsogo Sun cried foul, saying it had submitted a bid that was 50c higher than the Ethos bid. It complained to the SRP, which ruled that Gold Reef had breached certain rules.

Yesterday, Gold Reef announced it had successfully applied to the South Gauteng High Court for the SRP ruling to be reviewed and set aside.

Gold Reef brought shareholders attention to a comment made by the judge of the case: "Had the SRP appreciated the argument of [Gold Reef], it would have found that there was no offer by Tsogo as defined by the Code and there was therefore no merit in its complaint. In my view it misconceived [Gold Reef's] contention by classifying it in the manner in which it did."

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